Bitcoin’s six-year range within an ascending channel has caught the eye of a curious but optimistic analyst. The price chart preview shows that the coin has been range-bound over the years, capturing all of its volatility. Despite occasional dumping and pumping, the structure has yet to rupture.
At the time the screenshot was shared On July 21, Bitcoin was trading at the bottom of the ascending channel, skirting the support trend line, an indicator that prices have been generally lower in recent months. The rejection of the lower lows and the bounce from the support trend line, the analyst says, is bullish and puts the bulls back in contention.
Bitcoin at $175,000?
According to the trader’s assessment, a break above the upper resistance level around $32,000 could trigger a new bull run that may see the world’s most valuable cryptocurrencies retest the ascending channel highs at $175,000, a level that bullish HODLers may mark as a feasible target.
Still, considering the volatility of cryptocurrencies, this bullish forecast cannot be ruled out. To illustrate, the latest bull run took Bitcoin prices from under $10,000 to peaks of $69,000 in less than two years. Therefore, if Bitcoin bulls break above $32,000, a price level that the analyst says is important, it could be a bullish sign that may be the beginning of another leg in the resumption of the bullish formation set in motion between 2020 and 2021.
Bitcoin is trading below the $30,000 level at spot rates with resistance at $31,800. Despite widespread optimism across the board, bulls are yet to break past the July 2023 highs as prices consolidate.
Bitcoin price on July 22 | Source: BTCUSDT on Binance, TradingView
Halving and ETF approval as tailwinds?
The specific triggers for the upcoming run are unknown at this time. Even so, given previous cycles, Bitcoin’s next halving event may provide the impetus for a push towards the 2021 highs at $69,000. Additionally, traders are closely monitoring how applications for Bitcoin exchange-traded funds (ETFs) are progressing in the United States.
The US Securities and Exchange Commission (SEC) has rejected several spot Bitcoin ETF applications in the past. However, BlackRock’s involvement has been positively received, driving up prices in recent weeks. BlackRock is the world’s largest asset manager, managing trillions.
The approval of a Bitcoin ETF would make it easier for institutional investors to participate in the sphere, which could boost demand and lift prices. Most importantly, a Bitcoin ETF legitimizes Bitcoin as an investment asset. Bitcoin is the most dominant crypto asset, and complex derivative instruments, including exchange-traded products (ETPs), have been approved and listed on various markets in Canada, Europe, and Brazil.
Featured Image from Canva, Chart from TradingView
This post Bitcoin Will Hit $175,000 If Prices Break Out Of This Rising Channel, Trader Says
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