Bitcoin is showing signs of strength, with a bullish wedge forming on the charts.
Analysts predict a breakout to $85,000, which will be a 25% increase from current levels.
Breaking the $69,000 - $71,000 resistance could trigger a rally to a new resistance zone between $75,000 and $95,000.
While the sentiment is bullish, some analysts warn of a price drop to $62,000 or lower.
Bitcoin's price remains highly volatile, and a flash crash is always possible.
For the first time in a while, Bitcoin is showing signs of unchallenged strength.
Traders are now buzzing with excitement over a new "bullish wedge" pattern on the charts.
And if technical analysis is any indicator, we might be seeing Bitcoin explode to the upside soon.
However, what if traders are headed towards yet another frustrating range? What if Bitcoin declines?
What might be the next possible resistance/support zone Bitcoin is heading toward?
According to the charts, Bitcoin is now trading around its 2021 highs and has formed a bullish wedge pattern that traders like Jelle are closely watching.
"Price looks eager for a breakout — and once it does, I expect the move to be sharp. First target, $85,000," the analyst stated.
Keep in mind that, according to CoinMarketCap data, Bitcoin trades at around $68,148 and was up by around 1.25% between 26 and 27 July.
This means that if we do see this rally to $85,000, Bitcoin would have rallied by a staggering 25%, the same as what we saw on 21 July, when the cryptocurrency rebounded from $55,854 and hit $68,181.
Keep in mind that the critical hurdle Bitcoin is attempting to cross is the $69,000 -$70,000 zone, which was the same resistance that caused the bear market in November 2021.
Coinglass data shows that if Bitcoin were to break the $69,000 - $71,000 range, about $1.55 billion worth of bearish positions would be eliminated.
Because of this, analysts like BitQuant have mentioned that if we see a crossing over $71,000 and Bitcoin continues to rally upward, the cryptocurrency will enter a range between $75,000 and $95,000, which will be the next most "hated" region.
This means that if Bitcoin breaks above its previous ATH of $74,000, we might see a rally further up to $95,000 but with a possibly severe rejection that leads to another boring consolidation.
The sentiment, so far, has been bullish.
However, some analysts have issued bearish warnings. Crypto Ed, for example, warns that Bitcoin's price could still dip to $62,000 or lower.
"I expected a corrective bounce, followed by another leg lower towards 62k and maybe even lower," Crypto Ed said before adding, "That scenario is still possible, but the strength in the current bounce is starting to look like we have already finished leg two and heading to new highs again.”
This means that while a dump remains possible, Bitcoin could defy expectations and instead rally.
On the other hand, trading resource Material Indicators believes that Bitcoin cannot go below $63,500.
Overall, while most analyst predictions are bullish and predict a rally to as high as $95,000, it is important to remember that the crypto market is highly volatile and that a flash crash remains possible regardless.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.