Bitcoin price is moving within a descending channel on the weekly chart. Recently, for about four weeks, Bitcoin dipped below the bottom of this channel but has now made a strong recovery. Historically, it takes about 2-4 weeks for Bitcoin to reach the top of the channel when it recovers from the bottom of this channel.
Popular analyst Rekt Capital discussed whether Bitcoin is preparing for a major upward move in its market cycle. If this pattern continues, Bitcoin could reach the upper boundary of the channel, around $67,000, as early as next week. However, previous attempts to break above this channel have resulted in short-lived spikes followed by pullbacks. Here is a summary of his analysis:
Critical resistance levels:
$67,500: If the price breaks this level on the weekly chart and closes above it, it would indicate a strong bullish shift and could lead to testing higher levels.
$71,500: This is the top of the current consolidation range. A weekly close above this level could signal the start of a new, strong uptrend towards unknown price areas.
Historical Patterns and Halving Events
After previous halvings, Bitcoin has typically entered a consolidation (or “reaccumulation”) phase that lasts about 150-160 days before breaking out into a strong uptrend. Since the most recent halving occurred about 130 days ago, Bitcoin may need another month or so of consolidation before it begins an upward move.
What needs to happen now?
Bitcoin should continue to hold and build support around the $66,000 level to prepare for a move higher. Gradual and sustained growth is better than sudden spikes for a healthier long-term uptrend. Overcoming resistance at $67,500 and then $71,500 with weekly closes above these levels would confirm the start of a new bullish phase.
