Over the weekend, the Bitcoin price and the crypto market witnessed significant pressure amid escalating tensions between the United States and Iran. After reports of Israeli strikes on Iran, the premier cryptocurrency dropped below $64,000 while dragging the rest of the market along with it.
While the price of BTC seems to have recovered from the conflict-induced slump, there is still the small issue of its broader structure. According to a market expert, Bitcoin may have avoided a negative outcome after holding above $60,000 over the weekend.
BTC Price Closes February Above Pivotal Support
In a recent post on the X platform, Chartered Market Technician Tony Severino shared an insight into the current technical outlook of the Bitcoin price as February came to a close. According to the crypto market expert, the flagship cryptocurrency appears to have bounced back from a crucial support level around the $60,000.
Severino’s analysis is based on the ascending channel pattern on the Bitcoin price chart on the monthly timeframe. An ascending channel is a pattern in technical analysis marked by two major (upward-sloping) trendlines: the upper line connecting the swing highs and the lower line connecting the swing lows.
Source: @TonySeverinoCMT on X
As seen in the chart above, the asset usually trades within an ascending channel, with the upper boundary line often functioning as a barrier to further growth and the lower trendline serving as a support cushion. Investors can trade between the pattern’s support and resistance levels or after price breaks out (bullish signal) or breaks down (bearish signal).
In the market leader’s case, the price has been approaching the lower trendline for the majority of February, implying that a major decision was imminent. According to Severino, the Bitcoin price has never closed beneath this lower boundary, even during the COVID crash in 2020.
Unsurprisingly, the premier cryptocurrency rebounded from the support cushion around $63,000, recovering from the early-weekend slump triggered by the ongoing clash between the United States, Israel, and Iran. Typically, the next target after this bounce-back is the channel’s midline, which could be as high as $475,000.
While historical data and patterns are often good ways to predict future market movements, Severino acknowledged that the chance of the Bitcoin price soaring to as high as $475,000 is indeed slim. Moreover, the current price structure is still bearish, meaning that the market conditions would need to improve for the flagship cryptocurrency to take advantage of this rebound.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $67,919, reflecting an almost 3% increase in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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