Bitcoin (BTC) again retraced from its current price range’s resistance back to $67,000 and now trading at $68,300. However, the leading cryptocurrency has been building strong momentum that could soon pay off with a possible range breakout.
This 3-month price range, particularly, has built support at $60,000 and resistance at $72,000, with two deviations. The first deviation led to new highs at $73,805, upwards, while the second reached slightly above $56,500, downwards.
Nevertheless, BTC has managed to keep trading above its 30-day exponential moving average (30-EMA) at $66,628 since May 15. The daily relative strength index (RSI) also marks a neutral-to-strong 55.09, which could fuel a potential breakout soon.
Bitcoin price target $82,000 if the ‘Power of Three’ pattern plays out
In this context, the prominent crypto and stock trader who goes by Jelle on X is bullish on new highs. Jelle recently made a series of Bitcoin-related posts highlighting the strong momentum that could drive BTC to $82,000.
Notably, the first analysis shows what he called “the power of the three” pattern. As observed, Bitcoin previously went through a consolidation, followed by a downward deviation and a price rally to new highs.
According to Jelle, we are now somewhere in the middle of the third phase, when he expects Bitcoin to break from the consolidation range to new highs at around $82,000.
“History does not repeat, but it often rhymes. It’s time for the Power of Three to make its way towards the target: $82,000. Go time, next week.”
– Jelle (@CryptoJelleNL)
Interestingly, the next two posts highlight a falling wedge breakout and an overall breakout from key levels Jelle was watching. The trader believes that $72,000 is the remaining piece Bitcoin has to overcome for a bullish run upwards.
All levels have been broken, and the hidden bullish divergence has locked in.
Break $72,000, and this takes off — hard.#Bitcoin pic.twitter.com/L77gNMEWM1
— Jelle (@CryptoJelleNL) May 31, 2024
However, the maiden cryptocurrency has a few challenges to overcome moving forward. Other traders have already started drawing their exit strategy as retail investors jump in with positive price action. Meanwhile, Mt. Gox has finally started moving its creditor’s 10-year dormant funds, totaling $10 billion that will flood the market throughout this year.
Furthermore, Jelle warned cryptocurrency traders about a “once in a few years golden opportunity” with altcoins, which could play out when BTC breaks out.
Traders and investors must be cautious, do their due diligence, and apply proper risk management to avoid meaningful losses.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
