Following a weekend recovery, the Bitcoin price has shown signs of rebounding, with bullish momentum returning, sparking expectations for further price increases. While some forecasts suggest a downturn for the digital asset, there are those who anticipate the inception of a new upward trend for Bitcoin. Among these is crypto analyst Arman Shabann, who provided an insightful analysis of the Bitcoin price that appears to be unfolding effectively.
Reasons Behind Bitcoin’s Price Surge
In his analysis, Arman discussed the current bullish trajectory of Bitcoin’s price, particularly highlighting the establishment of a distinct ascending channel. The digital asset has been moving steadily within this channel, as evidenced by its recent upward momentum.
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So far, the cryptocurrency appears to be following the anticipated path, having bounced off support ranging from $108,000 to $109,000. After this bounce, the analyst observes that the Dogecoin price has now transitioned into a natural correction phase.
Currently, the Bitcoin price is still navigating along the midline, which is the critical point for determining the next move. There’s still a chance for the price to continue its downward trend and retest the support zone just above the $105,000 mark, as depicted in the chart.
If the Bitcoin price holds at this level, it could be gearing up for another bounce. Furthermore, the analyst indicates that reaching this level could represent a prime entry point, given the anticipated rebound.
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For a bullish scenario to unfold, Bitcoin needs to maintain its position above the channel’s upper boundary to sustain the upward trend. If bulls regain control, a significant price increase could follow, with the analyst projecting a potential rise of over 30%. This movement could elevate Bitcoin’s price to around $156,000 before the rally concludes.
Conversely, bears still hold the opportunity to reassert dominance over the digital asset. This would require breaking below the support level and redirecting momentum into negative territory. Should the support at $105,000 fail, the next target may be the dynamic support just north of the $100,000 threshold.
Featured image from Dall.E, chart from TradingView.com
