Bitcoin may be preparing for a significant bullish reversal, as highlighted by prominent crypto analyst BTCEarth. In a recent technical analysis shared on X, the analyst identified a durable support zone that could signal the formation of a market bottom.
Key Support Holds Strong
BTCEarth noted that Bitcoin’s price action has "respected the long-standing blue support line," a critical level established during the 2024 "Trump rally breakout." Key observations include:
- Historical Validation: The $74,000–$75,000 zone has been retested multiple times since September 2024, with recent touches at $74,434** and **$74,588 reinforcing its strength.
- Volume Confirmation: Rising trading volume during support retests suggests accumulating buyer interest.
- Pattern Alignment: The current structure mirrors past bottom formations, where consolidation near key support preceded major rallies.
👉 Bitcoin’s next breakout could mirror historic rallies
Falling Wedge Suggests Impending Breakout
BTCEarth’s chart reveals Bitcoin trading within a falling wedge—a typically bullish pattern characterized by converging trendlines (Line D: support; Line E: resistance). Key takeaways:
- Breakout Trigger: A daily close above Line E (descending resistance) would confirm the pattern and likely initiate an upward trend.
- Price Targets: Initial resistance lies at $80,000**, followed by a heavy-volume zone between **$86,000–$88,000**. The ultimate psychological milestone is **$100,000.
Strategic Accumulation Zone
The $74,000–$75,000 range remains a high-conviction accumulation area for traders, offering:
- Low Risk: Tight stop-loss placement below support.
- High Reward: A breakout could propel Bitcoin toward $88,000+, yielding a 15–20% upside.
FAQs
Q: What confirms a bullish reversal for Bitcoin?
A: A sustained breakout above the falling wedge’s resistance (Line E), backed by increasing volume.
Q: Where is Bitcoin’s major resistance?
A: The $100,000 level is the key long-term target, representing both technical and psychological significance.
Q: Is now a good time to buy Bitcoin?
A: The $74,000–$75,000 zone offers a favorable entry, but traders should await breakout confirmation to mitigate risk.
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Conclusion
Bitcoin’s stability above critical support, coupled with the falling wedge pattern, hints at an upcoming bullish phase. A breakout could accelerate gains toward $88,000–$100,000, but patience is essential until confirmation arrives. Traders are advised to monitor daily closes above resistance while capitalizing on dips within the accumulation zone.