Bitcoin Set for Major Breakout After 120-Day Slump: Analyst Eyes $70K

Published by

Mustafa Mulla

July 13, 2024

The world’s most popular cryptocurrency, Bitcoin, has been stuck in a consolidation phase for a record-breaking 120 days after hitting its new all-time high (ATH) of $73,083. However, analysts believe this sleeping giant might be on the verge of a great comeback.

Dive deeper to find out what the charts are saying and if a price surge is on the horizon. Hopefully, the slumber breaks soon!

Is a Breakout Coming?

Renowned crypto analyst Captain Faibik suggests that Bitcoin is on the verge of a significant breakout, potentially propelling the BTC price to $70,000. According to Faibik, Bitcoin is nearing an upside breakout from a Descending Broadening Wedge (DBW) pattern, a bullish technical indicator signaling a reversal in the downward trend observed in the 4-hour BTC/USDT chart.

The DBW pattern on the BTC chart indicates that the price is getting tighter. Typically, this pattern leads to a breakout in one direction. Given the current market sentiment, a bullish breakout appears more likely. Faibik’s analysis suggests that a successful breakout could see Bitcoin surging to $70,000.

This prediction comes at a time when Bitcoin has been struggling to maintain its recent gains, with the Bitcoin Fear & Greed Index plunging to an “Extreme” Fear level.

Market Forces at Play

In recent days, demand from inflows into spot Bitcoin exchange-traded funds (ETFs) and selling pressure from Bitcoin sales by the German government have been balancing each other out, effectively stalling Bitcoin’s price. The German government recently sold all of its 50,179 Bitcoins, worth approximately $3.3 billion, which were initially seized from an online piracy website.

Understanding the Market Impact

In the last 24 hours alone, the German government transferred 9,594 Bitcoins, valued at $553.7 million, and received 500 Bitcoins, worth $28.6 million. As of now, the German government holds no Bitcoin. Despite these transactions, Bitcoin (BTC) prices saw a brief surge following cooler-than-expected June inflation data but failed to break the crucial $60,000 mark.

Initially, Bitcoin’s price rose above $59,000 after the report, but it has now settled to trade just above $58,119.

Will the bulls win out, or will the bears continue to hold sway? Only time will tell.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.