Bitcoin, the leading cryptocurrency, experienced a significant correction at the beginning of the week, causing the price to retreat to the $40,000 level. This sudden decline led to panic among some investors, prompting them to engage in panic selling to avoid further losses. However, as the selling pressure subsided, Bitcoin began a gradual recovery. Amidst this recovery, crypto analyst Weslad has made an intriguing prediction, suggesting that Bitcoin could have further upside potential. With the iconic $69,000 price still as the holy grail, investors are optimistic about the possibility of reaching new all-time highs.
Weslad’s analysis revolves around the cup and handle pattern, which suggests the potential for an upward movement in Bitcoin’s price. The completion of this pattern is crucial as it indicates the possibility of a breakout and a subsequent rally. According to Weslad, Bitcoin successfully broke above the cup and handle pattern’s neckline at $31,800 and continued to rise. This breakout has established this level as immediate support and demand for Bitcoin, providing a strong foundation for further price growth.
The cup and handle pattern has yet to reach its final target of $69,000, according to the chart shared by the analyst. The current correction in Bitcoin’s price is expected and seen as a temporary setback before a potential rally. With the completion of the pattern, there is hope among investors that Bitcoin can reclaim its all-time high. It is worth noting that a move of only 70% from the current price of $40,000 would be sufficient to reach this milestone.
While the cup and handle pattern suggests the potential for a breakout and further upside, there are still multiple scenarios that could unfold in the market. Analyst Weslad presents two possible scenarios: Scenario A and Scenario B.
In Scenario A, Bitcoin experiences an upward rally driven by the sustained support at the handle’s target zone. The analyst identifies a resistance level between $48,000 and $50,000 that must be overcome for Bitcoin to continue its upward trajectory.
Scenario B, on the other hand, envisions a scenario where bulls fail to surmount the expected resistance at $48,000 and $50,000. In this case, Bitcoin could undergo a further correction, potentially dropping as low as the critical support zone at the neckline of $31,000.
As Bitcoin navigates through its recovery phase, analysts are eagerly watching for signs of a potential breakout and a move towards new all-time highs. The cup and handle pattern identified by Weslad provides hope and suggests the possibility of a rally that could take Bitcoin’s price back to $69,000. However, it is important to remain cautious as the market always presents multiple scenarios. Investors should conduct thorough research and consider the risks associated with cryptocurrency investing before making any investment decisions.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered as financial advice. Investing in cryptocurrencies carries inherent risks, and individuals should conduct their own research before making any investment decisions. The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of NewsBTC.