Bitcoin (BTC) enthusiasts are setting their sights on a potential bullish breakout as the cryptocurrency forms a notable pattern on the daily timeframe chart. BTC is currently forming a bullish flag pattern, and if the breakout occurs, the Bitcoin price will set a new all-time high, potentially reaching $86,000.
While the price showed great chances of maintaining a sideways trend after the halving, unaffected by the event, the weekend breakout has rekindled hopes for bullish continuation.
Bitcoin forms a bullish flag pattern
The flagship cryptocurrency Bitcoin is showing signs of a bullish flag pattern on its daily timeframe chart. However, the chart shared by Captain Faibik highlights the formation of a bullish flag, with clear upward and downward trendlines converging to form a flag pattern.
If Bitcoin manages to break above the upper trendline of the bullish flag, analysts expect a significant upside move in prices. A potential upside breakout could push Bitcoin to new highs next month.
Will Bitcoin Continue to $80,000?
BTC price has formed a triple top pattern and is widely expected to break above the lower neckline at $60,000. The bulls have once again managed to fool the bears and trigger a strong reversal that is now flashing a huge bullish signal. This breakout is a result of overextension and accumulation. However, on the larger timeframes, the price continues to trade under a bullish influence, which is confirmed by the recent bounce.
The price gained some strength soon after the RSI showed a bullish divergence and bounced off the 38.71 range. This provided bullish confirmation and an initial confirmed path towards $75,000, but the actual target is $80,000. Fortunately, whales showed interest soon after the bounce, thus reinforcing the uptrend. Currently, a bull run seems to be imminent, but BTC price needs to remain above $66,000 for the rest of the month.
As the price surged above the critical resistance of $63,800, the possibility of forming a new ATH above $75,000 became quite apparent. However, the bears still seem to be stationed in the range between $71,300 and $73,800. As a result, the bulls have not been able to break through the strong barrier. Therefore, the Bitcoin price is seen to maintain a healthy upward consolidation towards higher highs.
Historical performance
Likewise, well-known cryptocurrency trader Crypto Tea was among those suggesting a bullish move for Bitcoin, similar to the previous Bitcoin halving event that sparked a massive price rally.
Looking back at history, the 2012 halving marked the beginning of Bitcoin’s rapid rise, with its price increasing by a staggering 92 times after the halving. The subsequent halving events in 2016 and 2020 saw significant increases of 30 times and 8 times, respectively.
Looking ahead
On the back of past success, Bitcoin prices are expected to surge again. However, the extent of the surge remains to be seen, which adds a tinge of intrigue to the unfolding market dynamics.
While the declining volumes are raising some concerns, bulls are still awaiting a breakout of a crucial range, above which buying volume could intensify, leading to an uninterrupted bull run towards $100,000.
