Bitcoin (BTC) price is holding above the $29,000 level as it prepares for a significant move upward. The technical setup reveals the appearance of a bullish chart formation on the daily timeframe as Adam Back joins a growing list of market analysts who are bullish on the price of the big crypto ahead of next year’s halving event.
The Blockstream CEO, one of the early pioneers in the crypto industry, is confident Bitcoin will hit new all-time highs getting to over $100,000 before halving in 2024. Back is willing to drop a million wagering on it.
Back said this in a conversation on X, formerly Twitter, on August 7 where he agreed to bet with an anonymous user on the platform @Vikingobbitcoin that BTC will hit $100k before the halving event which is expected to take place in March next year.
Vinkingo believes that the pioneer crypto will not hit the coveted $100,000 mark until 2025.
the bet is on🚀: i bet #bitcoin reaches or exceeds $100k between now and halving (31st Mar 2024) with @vikingobitcoin9 1million sats to the winner. https://t.co/Ij7iPEYjQW pic.twitter.com/PNpAaZvl8F
— Adam Back (@adam3us) August 5, 2023
The wagered date comes roughly a month before the Bitcoin halving event, which is currently on track for April 26, as Back believes that the price will “probably” reach a new all-time high sooner than the actual date of the halving.
In the meantime, traders are waiting to see which direction the bellwether cryptocurrency will take as it trades at $29,061.
Bitcoin Price Readies For a 9% Upswing
BTC price action since June 24 has led to the formation of a series of lower highs and lower lows leading to the appearance of a falling wedge chart pattern on the daily timeframe (see below).
A falling wedge is a significantly bullish chart formation that suggests potential upward price movement. This pattern, while sloping downward, signals a likely trend reversal or continuation, marking a potential inflection point in trading strategies.
As such, a daily candlestick close above the wedge’s resistance line at $29,180 would confirm a bullish breakout from the governing chart pattern. The first line of resistance will emerge from the 50-day simple moving average (SMA) at $29,895 with the second one lying at the $30,000 psychological level.
Additional barriers lie at the $30,500 and $31,500 levels. Bulls have to overcome these roadblocks before BTC climbs to reach the technical target of the prevailing chart pattern at $31,675. Such a move would represent a 9.03% uptick from the current price.
BTC/USD Daily Chart
Supporting the positive outlook for Bitcoin were the upfacing SMAs. This suggested that there was enough demand in the market to propel the price of the flagship cryptocurrency higher. In addition, the relative strength index (RSI) and the moving average convergence divergence (MACD) indicator had begun tipping on the upside. This indicated that the buyers had started re-entering the market.
Note that the ongoing recovery could gain traction once the MACD crosses the neutral line into the positive region.
On the downside, a daily candlestick close below the $28,500 level, embraced by both the 100-day SMA and the wedge’s support line, would suggest a bearish breakout from the chart pattern with BTC recording lower lows.
If this happens, Bitcoin price may drop toward the $27,000 psychological level, where the 200-day SMA currently sits. Further declines could see BTC revisit the $25,500 and $26,000 buyer congestion zone. Market participants could expect Bitcoin’s downside to be capped here.
