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If the key trading pattern is confirmed, Bitcoin will rise in the next step. Is Bitcoin on the verge of an upswing? In this post we will take a look at this key trading pattern.
According to Pooyan Music, the formation of a head and shoulders reversal pattern will be significant if Bitcoin does not directly cross $67,500.
According to one crypto trader, the price could experience an uptrend if the well-known trading indicator known as the inverse head and shoulders pattern is confirmed.
“If we don’t break directly above $67.5k, something like this next month would make sense for a reversal of the bottom pattern,” crypto trader Matthew Hyland explained in a May 4 post on X.
He points to an inverted head and shoulders pattern. The inverse head and shoulders pattern is a bullish indicator that shows that the downtrend is weakening and that buyers are dominating the market more.
“It will be a great setup to take the next step,” he announced.
However, it is crucial that Bitcoin is above its short-term support price of $59,500 to “maintain its uptrend”. But pseudonymous crypto analyst and CMCC Crest co-founder Willy Woo told his 1.1 million X followers on May 3.
This price rally appears when Bitcoin price forms three lowers than the so-called collar resistance, with the middle trough – known as the head – deeper than the left and right shoulders.
The price of Bitcoin has risen slightly from the “top” to $58,614 on May 1. And if this pattern continues as the Highland model shows, the second shoulder support will be $60,000.
This represents a 5% drop from the current price of $6,3350, according to data from CoinMarketCap. According to CoinGlass data, a drop to this level would liquidate $530 million in long positions.
According to Hyland’s model, Bitcoin may rise above the neckline by June. surpass its current high price of $7,3800.
Moreover, according to the fear and greed index, the interest of buyers in the crypto market is slowly increasing.
The index currently stands at a “Greed” score of 69, a big improvement from three days ago when it showed “Fear” at 43.
Meanwhile, some traders expect the price of Bitcoin to remain stagnant in the short term. But they don’t necessarily see this as a bearish signal.
The crypto trader nicknamed the Titan of Crypto added: “The longer Bitcoin’s consolidation takes, the higher its price will trendline.”
Crypto trader aka Daan Crypto Traders told his X followers in a post on May 4 that “Bitcoin’s previous cycle highs will cause a price drop and a multi-week halt for Bitcoin.”
