The Bitcoin price has been on the rise, surpassing $58,000 and showing signs of recovery over the past week. A popular crypto analyst, Ali Martinez, has identified a chart formation that suggests a potential continuation of this upward trend for the premier cryptocurrency. In a recent post on the X platform, Martinez highlighted an ascending triangle pattern on the four-hour Bitcoin price chart. This pattern consists of a horizontal line connecting swing highs and a rising trendline connecting swing lows. While ascending triangles are usually seen as continuation patterns, signaling a breakout in the prevailing trend direction, there are exceptions to this rule.
If Bitcoin manages to break above the horizontal line of the triangle, set at the $59,200 resistance level according to Martinez, it could pave the way for further price appreciation. The analyst predicts that the cryptocurrency could rally as high as $63,800 in the near term, based on this pattern.
Weighted Sentiment Plummets But Shows Signs of Recovery
In another analysis by Martinez, Bitcoin’s weighted sentiment witnessed a significant drop following a decline to $53,300. Data from Santiment indicated that the sentiment fell to -2 on July 5, marking its lowest level since the COVID-19 crash in March 2020. A negative sentiment is often seen as a bearish signal for the Bitcoin price, suggesting potential further downside.
Despite hitting a multi-year low recently, the weighted sentiment for Bitcoin is gradually moving towards a more positive direction. As of Martinez’s latest update on July 13, the metric was still negative at around -0.47, indicating a possibility of continued downward pressure on the cryptocurrency’s price.
Impacts of External Events on Bitcoin Price
The recent failed assassination attempt on former President Donald Trump, a vocal supporter of Bitcoin, caused some volatility in the cryptocurrency market. The price of Bitcoin surged above $59,200 following this incident, bringing it closer to Martinez’s projected target of $63,800. Such external events can have a short-term impact on the sentiment and price of Bitcoin, highlighting the interconnectedness between traditional news and the crypto market.
While the Bitcoin price has shown signs of recovery and potential for further upside, there are still risks to consider, particularly in terms of sentiment and external factors. The analysis by Ali Martinez provides valuable insights for investors and traders looking to navigate the volatility of the cryptocurrency market. It is essential to monitor chart patterns, sentiment indicators, and external events to make informed decisions when trading Bitcoin.
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