Trader Claims Bitcoin Will Reach $175,000 If Price Breaks Above This Ascending Channel

Bitcoin’s six-year range inside an ascending channel has attracted the attention of a curious but optimistic analyst. Previewing the price chart shows that the coin has been in a range for years and is catching all its volatility. Despite periodic dumping and pumping, the structure has not yet ruptured.

so far the screenshot was shared On July 21, bitcoin was trading below a rising channel after crossing a support trend line, an indicator that the price has been generally trading lower in recent months. The rejection of the lower low and bounce off the support trend line, the analyst says, is bullish and clearly puts the bulls in contention.

Bitcoin to $175,000?

According to trader assessments, a break above the upper resistance around $32,000 could potentially trigger a new bullish run, which could see the world’s most valuable cryptocurrency revisit the ascending channel high of $175,000, a level that bullish HODLers could mark as a viable target.

Nevertheless, given the volatility in crypto, this bullish forecast cannot be dismissed. For example, the previous bull run took bitcoin price from less than $10,000 to a peak of $69,000 in less than two years. Therefore, if bitcoin bulls move above $32,000, which the analyst claims is a key price level, it could be a bullish signal that could be the start of another move to resume the bullish formation set in motion between 2020 and 2021.

Bitcoin is trading below the $30,000 level and with resistance at $31,800 at the spot rate. Despite general optimism across the board, bulls are yet to overcome July 2023 highs as prices strengthened.

Halving and ETF Approval as Tailwind?

The specific triggers for the next run are currently unknown. Nevertheless, taking past cycles into account, the upcoming bitcoin halving event could provide impetus for a rise to as high as $69,000 in 2021. Furthermore, traders are closely monitoring how spot bitcoin exchange-traded fund (ETF) applications in the United States proceed.

The US Securities and Exchange Commission (SEC) has rejected several spot bitcoin ETF applications in the past. However, BlackRock’s involvement has been received positively, leading to an increase in prices over the past few weeks. BlackRock is the world’s largest asset manager with trillions under management.

The approval of a bitcoin ETF would make it easier for institutional investors to participate in the space, potentially increasing demand and driving up prices. Most importantly, bitcoin ETFs legitimize bitcoin as an investment asset. Bitcoin is the most prominent crypto asset, and complex derivative instruments including exchange-traded products (ETPs) have been approved and listed on various exchanges in Canada, Europe and Brazil.

Feature image from Canva, chart from TradingView