Yerevan (CoinChapter.com) — Bitcoin bears should brace for an impact as a technical indicator plan to send the flagship cryptocurrency to its new all-time high of around $80,000.
Dubbed as “Ascending Triangle,” the indicator is a bullish continuation pattern that appears when an asset forms two or more highs that constitute a horizontal line. Meanwhile, it also forms two or more troughs lower on a rising trendline that later converges with the horizontal line. Together, the trendlines make the structure appear like a right-angled triangle.
The outcome of an Ascending Triangle is bullish. The asset repeatedly tests the horizontal line as resistance, only to break above it at a later stage. Traders typically set their breakout target up equal to the maximum distance between the Triangle’s horizontal line and a rising trendline.
Insofar, Bitcoin checks all the boxes. The cryptocurrency is fluctuating inside an Ascending Triangle while eyeing a breakout above its horizontal line – a level that coincides with $60,000.
The maximum distance between Bitcoin’s Ascending Triangle is about $20,000. Therefore, should the cryptocurrency break out of the structure to the upside, its technical target will be $60,000 plus $20,000 — which means $80,000.
The upcoming week will see Coinbase, a US-based cryptocurrency exchange, going public via a direct listing on Nasdaq Stock Market. The company, which also runs a custodian and staking service on the sideways in the US and abroad, could achieve a blockbuster opening in the markets due to its lofty valuations. Many analysts see the listing as Bitcoin’s confirmed foray into the Wall Street sphere.
Traders could raise their bets on Bitcoin as a response to the euphoria surrounding Coinbase. A confirmed close above $60,000 would raise the cryptocurrency’s possibility of hitting new record highs. The previous sits near $61,788, established mid-March.
Meanwhile, more bullish cues for Bitcoin could come from the US Bureau of Labor Statistics. On Wednesday — the same day Coinbase stock goes live on Nasdaq — the bureau will release Consumer Price Index (CPI) data. Investors note that the consumer inflation would increase to 1.5 percent in March from 1.3 percent in February.
A stronger-than-expected reading on inflation could raise US bond yields. In turn, that would increase the appeal of the US dollar among foreign investors. Normally, it could prove bearish for Bitcoin. But lately, the cryptocurrency has risen in tandem with the dollar, signifying that it remains a popular hedge against inflation fears.
Many corporates, including Tesla, have replaced a significant portion of their dollar reserves with Bitcoin. Higher inflations reduce their earnings estimations. Bitcoin arguably serves as insurance against such prospects.