Bitcoin Price Recovers From One Month Below Channel – Could $475,000 Be Next?
Over the weekend, the price of Bitcoin and the crypto market saw a lot of pressure amid the growing tensions between the United States and Iran. After reports of Israeli strikes in Iran, the first cryptocurrency fell below $64,000 while dragging the rest of the market with it.
Although the price of BTC seems to have recovered from the collapse caused by the conflict, there is still a small problem for its broader structure. According to market experts, Bitcoin is likely to avoid a negative outcome after holding more than $60,000 above the at the weekend.
BTC Price Closes In February Above Key Support
In a recent post on the X platform, Chartered Market expert Tony Severino shared the current technical views of the Bitcoin price as February comes to an end. According to crypto market experts, the leading cryptocurrency appears to be retreating from the key support level around $60,000.
Severino’s analysis is based on the ascending channel pattern on the Bitcoin price chart during the monthly timeframe. An ascending channel is a pattern in technical analysis marked by two major (upward) trend lines: the upper line connecting the swing highs and the lower line connecting the swing lows.
Source: @TonySeverinoCMT on X
As seen in the chart above, the stock usually trades within an ascending channel, with the upper boundary line often acting as a barrier to further growth and the lower line acting as a cushion of support. Investors can trade between the pattern’s support and resistance levels either after the price breaks (bullish signal) or breaks (bearish signal).
In the case of the market leader, the price has been approaching the low line for most of February, which means that the big decision was near. According to Severino, the price of Bitcoin has never closed below this lower limit, even during the COVID crash in 2020.
Surprisingly, the main cryptocurrency rebounded from the cushion of support at around $63,000, recovering from the collapse earlier in the weekend caused by the ongoing conflict between the United States, Israel, and Iran. Typically, the next target after this is a reversal of the center line of the channel, which can be as high as $475,000.
While historical data and patterns are often good ways to predict future market movements, Severino admitted that the chance of Bitcoin’s price rising to $475,000 is really slim. Furthermore, the current price structure is still bearish, which means that market conditions will have to improve for the flagship cryptocurrency to take advantage of this rebound.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at about $67,919, which represents an increase of almost 3% in the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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