Bitcoin technical analysis: Can it knock on the door of $80,000?
Bitcoin may soon rebound to a new record high after breaking through the so-called triangle resistance.
Earlier on Monday, Bitcoin briefly surpassed $72,000, crossing the triangle consolidation pattern defined by the resistance line connecting the March 15 and March 27 highs, and the support line connecting the March 20 and April 3 lows.
The upside target of $80,000 corresponds to at least a 10% increase from the current price of $72,300.
The breakout comes on the heels of a better-than-expected U.S. nonfarm payrolls (NFP) report that highlighted the resilience of the U.S. economy and spurred risk-taking in all corners of financial markets.
Bitcoin has been on a “broad rebound” this year, with not only cryptocurrencies soaring to new highs, but also traditional assets such as Wall Street’s tech index, the Nasdaq, the broader S&P 500 and gold. The cryptocurrency’s gains have been supported by the continued expansion of the supply of major stablecoins.
In technical analysis, investors and analysts study price patterns to predict the future trend of an asset. Symmetrical triangles, commonly known as coils, represent consolidation with a narrowing price range. Markets often accumulate energy during consolidation and eventually release it in the direction of range resolution. Typically, symmetrical triangles end with a bullish breakout
