Bitcoin’s price trajectory may be on the verge of a significant turnaround, according to noted cryptocurrency analyst BTCEarth. In a recent post, the analyst highlighted a key support zone that has proven resilient, suggesting the potential formation of a price bottom.
The analyst noted that the price action has consistently adhered to a long-established blue support line, first created during the so-called “Trump rally breakout”. The current market structure suggests that a potential bottom could be forming in this zone, a prediction backed by both trading volume and historical price behaviour.
Given the trading volume and historical price behaviour, BTCEarth posits that this could be the initial signal of a bullish shift for Bitcoin.
Is Bitcoin on the Cusp of a Price Recovery?
BTCEarth’s analysis indicates that a blue horizontal support line on his chart matches closely with Bitcoin’s early breakout in September 2024. This level has since served as an important support zone, enduring multiple tests over the ensuing months. Notably, the most recent price points at $74,434 and $74,588 seem to have established a further significant bottom.
The analyst suggests that the repeated validation of this support indicates that Bitcoin is constructing a robust foundation. If this structure endures, it could clear the way for a bullish reversal, particularly as market momentum and historical price behaviour point towards a potential breakout from this region.
Further, BTCEarth underlined that Bitcoin is currently trading within a falling wedge pattern. On his chart, Line D serves as the base of support, while Line E denotes the descending resistance. The price action continues to tighten within this diminishing structure, indicating an imminent breakout.
He suggested that a confirmed move above Line E, particularly one sustained over multiple daily candle closes, would validate this pattern and confirm a bullish reversal. Such a breakout could instigate a more potent upward trend as traders recognize the shift in market structure.
Key Resistance and Buying Zones
BTCEarth identified an accumulation zone between $74,000 and $75,000, which remains unbroken, providing a favorable risk-reward configuration for long positions. The immediate resistance resides at $80,000. Additional resistance is found between $86,000 and $88,000, a region of historical consolidation and substantial volume. A breakout above this zone would significantly bolster Bitcoin’s position.
Moreover, he pointed to the major horizontal resistance near $100,000 as the ultimate target. This level carries significant psychological weight and serves as a crucial technical threshold. If Bitcoin can muster sufficient momentum to breach it, it could pave the way for a new phase of the long-term bullish cycle.
In conclusion, BTCEarth noted that Bitcoin is stabilizing above a crucial support zone, with the price structure suggesting a potential bottom formation. A breakout above Line E could ignite a powerful bullish move towards the $88,000 – $100,000 range. However, until such a breakout occurs, caution is advised, with a hold strategy being the recommended course of action.
Featured image from Adobe Stock, chart from Tradingview.com
