Amid the general pessimism currently surrounding the cryptocurrency and Bitcoin space, renowned cryptocurrency analyst and trader Doctor Profit made a bold prediction that the crypto asset would bounce back to the crucial $70,000 level in the next days.
Doctor Profit’s analysis that has sparked optimism within the crypto community relies on a bullish price formation that suggests a positive reversal is imminent. The analyst Free this positive prediction in its recent Big Sunday report.
Bitcoin will soon return to $70,000
According to Dr. Profit, since the last big report on Sunday, in which he identified a persistent sideways movement, nothing significant has changed for Bitcoin. However, a falling wedge model has surfaced on smaller, daily timeframes, suggesting that $70,000 could be the flagship crypto’s next target in the coming days.
Doctor Profit is confident that Bitcoin will return to the aforementioned level due to the fact that a falling wedge pattern usually signals a strong breakout to the upside. Despite the recent price decline and broader pessimism, this trend indicates that the crypto asset could be poised for a significant rally.
The expert noted that this development corresponds to the liquidity pool between the $70,000 and $72,000 price levels. And for the first time in weeks, the funding rate has started to look robust and stable at the same time as the Long and Short ratio on the stock exchanges is balanced.
He further highlighted strong fundamental indicators on BTC’s chart and on-chain data that prompted him to believe in a significant price increase in the third and fourth quarter of this year. However, several bearish trends are developing over shorter time frames, which encourages Bitcoin to lose several crucial support lines, including the MA100 Daily, MA20 Daily, MA50 Daily and EMA100 Daily.
“The MA50 Daily, a key bull market indicator, broke down on Tuesday June 18 and two days later BTC pumped towards the MA50 Daily level, only to be rejected at $66,519,” he said declared. As a result, it monitors a breakout of the descending wedge on the daily chart and a breakout of the daily MA50 level.
No major movement before the close of the second quarter
If a breakout occurs, the expert believes it could lead to a more powerful rally than previous ones, pushing BTC above the $72,000 mark in the short term. Nevertheless, given the sideways movements of the cryptocurrency, Doctor Profit does not expect significant movements before the third quarter. So he urged investors to keep a close eye on the daily MA50 level and any possible breakout from the formation of a falling wedge.
In the previous Big Sunday report, the expert had alluded to a pool of liquidity forming around $64,400. It now warns that the level has been reached and there is virtually no liquidity left to withdraw from the decline.
Featured image from iStock, chart from Tradingview.com
