The leading cryptocurrency Bitcoin had a turbulent course in August. After falling below $50,000 at the beginning of August, BTC has recently made a rapid recovery, rising above $60,000.
While further increases are expected in September, the analyst said that Bitcoin exceeding $68,000 could be a signal that the downward trend since March will reverse.
Alex Kuptsikevich, Senior Market Analyst at FxPro, argued that Bitcoin’s monthly candle for August could signal a reversal of the current trend if it forms a “dragonfly doji” pattern, a Japanese candlestick.
The Dragonfly doji candle is a candlestick pattern that signals a potential reversal in price based on past price action.
Kuptsikevich noted that this pattern could be a signal for a recovery and a potential reversal of Bitcoin’s downtrend since its all-time high in March.
Noting that the Dragonfly doji pattern has not yet been confirmed, the analyst stated that the price must exceed $68,000 for BTC to start a rapid rise and reverse the current trend.
“We saw the strength of the bulls in Bitcoin with the buyback of BTC after the sharp decline earlier in the month.
At this point, Bitcoin has several technical hurdles on its way up, having remained in a wide downward channel since March.
Just breaking above $68,000 will be enough for us to say that the downtrend has been broken.”
The analyst lastly stated that after exceeding $ 68,000, the Bitcoin price will quickly rise above $ 74,000, saying, “The arrival of a new ATH above $ 74,000 could take the BTC price to uncharted territory, and then a rapid increase to the $ 110,000 level could occur.”
*This is not investment advice.