Bitcoin, the world’s most popular cryptocurrency, has been in a consolidation phase for a remarkable 120 days since reaching a new all-time high price of $73,083. Analysts believe that this period of dormancy may soon come to an end, with the cryptocurrency poised for a strong comeback.
Renowned crypto analyst Captain Faibik suggests that Bitcoin is on the brink of a significant breakout, potentially pushing the price to $70,000. Faibik points to a Descending Broadening Wedge pattern on the BTC/USDT chart, a bullish technical pattern that often signals a reversal in downward trends. This pattern indicates that Bitcoin’s price is consolidating and may soon experience a breakout, with a bullish outcome appearing more likely given current market sentiment.
Faibik’s analysis indicates that a successful breakout from this pattern could propel Bitcoin to $70,000. This prediction comes at a time when Bitcoin has been struggling to maintain its recent gains, as evidenced by the Bitcoin Fear & Greed Index dropping to an “Extreme” Fear level.
Recent selling pressure from the German government, which sold all of its 50,179 Bitcoins seized from an online piracy website, has been offsetting demand from inflows into spot Bitcoin exchange-traded funds (ETFs), leading to a temporary stall in Bitcoin’s price. In the past 24 hours alone, the German government transferred 9,594 Bitcoin, valued at $553.7 million, and received 500 Bitcoin, worth $28.6 million, leaving them with no Bitcoin holdings.
Despite a brief surge in Bitcoin prices following June’s cooler-than-expected inflation data, the cryptocurrency failed to break the crucial $60,000 mark. Currently, Bitcoin is trading just above $58,119. Investors are eagerly watching for signs of a breakout that could propel Bitcoin to new heights.