Key Takeaways
- Bitcoin price was recently hovering around a three-month high just below the closely watched $67,000 mark.
- Since topping out in early March, Bitcoin’s price has oscillated within a symmetrical triangle, potentially consolidating before breaking out to continue a longer-term uptrend.
- Investors should watch bullish chart-based price targets on Bitcoin’s chart around $92,500 and $135,000, while monitoring support levels near $60,000 and $44,000.
Bitcoin (BTC) could make more headlines today as the leading cryptocurrency’s price hovers around a three-month high just below the closely watched $67,000 mark.
The digital asset, currently around 6% higher this week, has received a boost in recent days from significant inflows into spot Bitcoin exchange traded funds (ETFs). So far this week, the 12 U.S. funds have amassed nearly $1.4 billion in net inflows, with the ETFs on track to record strong weekly inflows.
The surge in ETF inflows indicate that the Federal Reserve’s half-percentage-point cut to its benchmark funds rate last month may be renewing investor optimism for the broader asset class.
Below, we’ll take a close look at the technicals on Bitcoin’s chart and point out key price levels to watch for.
Price Trades Within Symmetrical Triangle
Since topping out in early March, Bitcoin’s price has oscillated within a symmetrical triangle, potentially consolidating before breaking out above the pattern to continue a longer-term uptrend.
However, it’s worth pointing out that trading volumes on Coinbase (COIN), the largest U.S crypto exchange, have trended lower in recent months, indicating that many investors may still be on the sidelines, waiting for a decisive breakout.
Let’s turn to Bitcoin’s chart to forecast several potential price targets above the cryptocurrency’s record high and identify two key support levels investors may be watching.
Bullish Price Targets to Monitor
To project our first upside target, we’ll use the measuring principle. This works by calculating the distance between the symmetrical triangle’s two trendlines near their widest point and adding that figure to the pattern’s top trendline. For example, we add $24,000 to $68,500, which forecasts a price target of $92,500, around 38% above Bitcoin’s current price.
When forecasting a longer-term bullish move, we can apply a bars pattern. Such a technique uses historical trends on the chart to speculate how a future directional move may play out. In this case, we’ll take Bitcoin’s strong trend higher that preceded the symmetrical triangle and reposition it from last month’s low, which projects an upside target of around $135,000.
Support Levels to Watch
Investors should monitor how the price responds to the key psychological $60,000 level. This area on the chart could find support from the symmetrical triangle’s lower trendline and a range of comparable trading levels positioned around the cryptocurrency’s 2021 peak.
A breakdown below the symmetrical triangle could see Bitcoin’s price drop to around $44,000, where investors may look for buying opportunities near a horizontal line linking a series of price action from February 2021 to January this year.
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