Bitcoin Could Surge Next Week if It Breaks Key Resistance Levels

Bitcoin has recently shown signs of recovery after a period of decline within a downward-sloping channel on its weekly chart.

For approximately four weeks, Bitcoin had been trading below the lower boundary of this channel but has now bounced back into it. Historically, when Bitcoin has rebounded from such lows, it typically takes around 2 to 4 weeks to reach the top of the channel.

Analyst Rekt Capital has suggested that Bitcoin could be preparing for a significant upward move. If the current trend continues, Bitcoin might approach the channel’s upper limit of about $67,000 as soon as next week. However, previous attempts to break above this level have often resulted in brief spikes followed by subsequent pullbacks.

For Bitcoin to confirm a strong bullish trend, it will need to surpass key resistance levels. Specifically, a weekly close above $67,500 could signal a shift towards higher prices, potentially leading to an uptrend. Additionally, a close above $71,500 would suggest the beginning of a new, powerful upward phase.

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Historically, Bitcoin has gone through a consolidation phase of roughly 150 to 160 days following halvings before breaking into a strong uptrend. Since the most recent halving occurred about 130 days ago, Bitcoin might still be consolidating, with a potential upward move expected in the next month.

For a healthy long-term trend, Bitcoin should continue to build support around $66,000, with gradual growth preferred over sudden price spikes. Clearing resistance at $67,500 and $71,500 with sustained weekly closes above these levels would likely signal the start of a new bullish phase.

Alexander Stefanov