Bitcoin

Analyst: Bitcoin Just Posted the “Most Important Breakout” in BTC History

Cole Petersen | Aug 06, 2020 | 23:00

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• Bitcoin has been seeing some incredibly bullish price action throughout the past several days and weeks
• The cryptocurrency is now consolidating at just below $12,000 as its buyers attempt to catalyze another leg higher
• Despite facing resistance at this level, the crypto has yet to see any type of harsh breakdown here
• One recent technical development is creating a new source of bullishness amongst traders
• The cryptocurrency just broke out of a multi-year bull pennant, with this being the “most important breakout” in BTC history – according to one trader

Bitcoin and the aggregated cryptocurrency market are currently consolidating after BTC, ETH, and other altcoins ran into insurmountable resistance this past Saturday.

Despite the selling pressure here being heavy, it is essential to note that the cryptocurrency remains technically strong, as it has yet to see any harsh rejection.

As for what this means for where it may trend next, one trader is expecting it to see some near-term downside before it can push any higher.

There is one recent technical development, however, that shows BTC dips are for buying in the near-term.

The benchmark digital asset was just able to break out of a multi-year bull pennant, which analysts claim is a crucial factor to consider in the near-term.

Bitcoin Struggles to Break Key Resistance as Analysts Eye a Pullback

At the time of writing, Bitcoin is trading up marginally at its current price of $11,850. This is around the level at which it has been trading throughout the past several days.

Last weekend, BTC ran as high as $12,000 before it hit insurmountable resistance that sparked the ongoing consolidation phase.

One analyst is now noting that he expects BTC to retest its support at $11,350 before it can rally past the resistance it is currently facing.

“Breakout from range confirmed when: successful retest of resistance as support (bouncing from it). Bounce closes higher than previous high.”

Image Courtesy of Teddy. Chart via TradingView.

BTC Just Saw a Crucial Technical Breakout

Another analyst recently pointed to Bitcoin’s recent ability to break above a descending trendline and bull pennant that has been formed since the 2017 peak, calling it the “most important breakout in BTC history.”

Image Courtesy of CryptoBirb. Chart via TradingView.

As seen on the above chart, the cryptocurrency saw a similar breakout in June of 2016, which is what sparked the massive uptrend that ultimately resulted in Bitcoin seeing a parabolic move to $20,000 in late-2017.

If history rhymes, this could mean that Bitcoin is entering the early phases of its next major bull trend.

Featured image from Unsplash.
Charts from TradingView.