The sentiment around Bitcoin’s price has turned massively positive due to its recent price movement; the real question is if there is enough momentum to push the price to $10,000 and beyond since there is a massive resistance at this level.
Ascending Right Angled Broadening Formation
There are two scenarios as to how the price of Bitcoin might perform in the upcoming days, a pullback, or a push through $10,000, which will create enough FOMO to push the price of Bitcoin to a much higher level than previously anticipated. The Ascending Right angled broadening formation usually has a chance of an upward breakout about 54% of the time, however, there is a possibility that it could break to the downside.
Scenario 1: Target $10,000+
Source: TradingView
There are two important resistance lines, the first is the ascending resistance line, whereas the second is the horizontal line acting as support. The price tends to fluctuate between these two lines until it breaks out of it.
The broadening formation as seen below has already been breached, and the breakout target is +15% from point A, which puts the price of Bitcoin at $10,700+. The volume is also conforming to the pattern, indicating an imminent breakout. Since the breakout has already happened and the price of Bitcoin, at press time, was $9,834, there is still an ascent of $850+ yet to be achieved.
Scenario 2: Target $6,700+
Source: TradingView
If the price is considered to be in the pattern without any breakouts, there is another possibility where the breakout might happen to the downside. According to Bulkowski, the target is C, as shown in the above chart.
The target for this breakout would mean that the price would have to dump from the upper band and break the horizontal support line and further proceed to reach the target at ~$6,700.
Conclusion
The price of Bitcoin has had enough momentum since the start of April and has not stopped to retrace the price; the overall sentiment of the market has increased since this point, which could act as a catalyst and push the price of Bitcoin to $10,000 without a problem.
However, if the momentum falls short, a long overdue correction play will take place, pushing the price of Bitcoin to three possible support points:
- $8,100
- $7,400
- $6,700
This also means that if the correction starts, Bitcoin could possibly stop at any of the above-mentioned levels.