Bitcoin will ‘take the next step’ once key trading patterns are confirmed — Trader
Bitcoin (BTC) price could see a bullish trend reversal if a popular trading indicator known as the inverse head-and-shoulders pattern is confirmed, which could “catalyze the next phase of the rally,” according to one cryptocurrency trader.
Crypto trader Matthew Hyland explained on May 4: “If we fail to break $67.5,000, a bottom pattern reversal could make sense if something like this were to form next month.” post At X.
He is referring to the inverted head and shoulders pattern. This is a bullish indicator that the downward trend is easing and buyers are becoming more dominant in the market.
“It will be great preparation for the next step,” he declared.
It is important for Bitcoin to remain above its short-term holding price of $59,500 to “maintain its bullish trend,” Willy Woo, anonymous cryptocurrency analyst and co-founder of CMCC Crest, told his 1.1 million X followers on May 3. .
This setup occurs when the Bitcoin price forms three lows below the so-called neckline resistance line. The middle trough (also known as the head) is deeper than the left and right shoulders.
Bitcoin price has rebounded slightly from its “head” of $58,614 on May 1, and if the pattern continues, as Hyland’s model shows, it will find support near the second shoulder, around $60,000. This is a key support level.
The decline is equivalent to 5% from the current price of $63,350, according to CoinMarketCap data. A drop to this level would lead to the liquidation of $530 million in long positions, according to CoinGlass data.
According to Hyland’s model, Bitcoin could rise above the neckline by June and exceed its current high of $73,800.
Moreover, according to the Fear and Greed Index, buyer interest in the cryptocurrency market is slowly increasing.
The index currently has a ‘greed’ score of 69, which is a significant recovery from the ‘fear’ score of 43 three days ago.
Related: Bitcoin widened its futures gap to $63,000 as lack of liquidity threatened the price of BTC.
Meanwhile, some traders expect the Bitcoin price to remain stagnant in the short term, but they do not necessarily see this as a negative.
Anonymous cryptocurrency trader Crypto’s Titan added, “The longer Bitcoin consolidation takes, the more likely the price will meet the trend line.”
“Bitcoin’s previous cycle all-time highs tend to slow down the price and cause Bitcoin to stagnate for several weeks,” Daan Crypto Traders, an anonymous cryptocurrency trader, told his X followers in a May 4 post.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
