While Bitcoin is currently seeing a mild drawdown below the $80,000 level, popular crypto analyst Ali Martinez has predicted that the asset may still be on track for another price rally despite the recent pullback.
The analyst shared a technical analysis on Bitcoin’s price structure, revealing that the asset has continued to trade within a well-defined ascending channel that has determined its price movement since April 9.
He noted that the asset has been moving in repeated patterns that have each produced strong price rallies at every point when Bitcoin retested the lower support boundary of the channel.
Bitcoin eyes $86,000
According to the analyst, Bitcoin first bounced from a low of $71,000 on April 13. This triggered an 11% rally that brought Bitcoin to the top of the channel at around $78,000.
Furthermore, a similar pattern was observed on April 30 when Bitcoin surged 10.5% from a support level of $75,000 to about $82,900.
While the analyst believes that the same pattern is forming again, he identified $79,000 as the new support level, noting that Bitcoin is once again testing the same ascending support structure.
Thus, if Bitcoin is able to sustain momentum and buyers manage to maintain this level, there is a good chance Bitcoin could surge to $86,000, which is the top of the current channel projection.
What are the odds?
While the technical analysis shared has been largely supported by the crypto community, market participants expressed confidence in Bitcoin’s potential to make a big price move soon.
Nonetheless, the analyst also noted that there are chances that Bitcoin might face a reversed outcome if it breaks down below the $79,000 support zone. This could invalidate the ongoing trend, signaling a deeper price correction toward lower support levels.
