The inverse head and shoulders pattern forming “would make sense” if Bitcoin doesn’t “break straight through” $67,500, according to a crypto trader.
Bitcoin’s price could see a bullish trend reversal and “propel the next leg up” if the popular trading indicator known as the inverse head and shoulders pattern is confirmed, according to a crypto trader.
“If we don’t break straight through $67.5k then something like this forming over the next month would make sense for a bottom pattern reversal,” crypto trader Matthew Hyland explained in a May 4 post on X.
He is referring to the inverse head and shoulders pattern — a bullish indicator which signals the downtrend is easing, and buyers are becoming more dominant in the market.
“It would be a great setup to propel the next leg up,” he declared.
Although it is crucial that Bitcoin holds above its short-term holder price of $59,500 to “maintain its bullish trend,” pseudonymous crypto analyst and co-founder of CMCC Crest Willy Woo told his 1.1 million X followers on May 3.
The setup appears when Bitcoin’s price forms three troughs below a so-called neckline resistance, with the middle trough — otherwise known as the head — deeper than the left and right shoulder.
Bitcoin’s price has slightly rebounded from the “head” at $58,614 on May 1, and if the pattern continues as Hyland’s model suggests, it will find support around its second shoulder, at $60,000 — a key support level.
The decline would represent a 5% from its current price of $63,350, as per CoinMarketCap data. Dropping to this level would liquidate $530 million in long positions, according to CoinGlass data.
According to Hyland’s model, Bitcoin may rise above the neckline and exceed its current all-time high of $73,800 by June.
On top of this, buyer interest in the crypto market is slowly increasing, according to the Fear and Greed Index.
The index is currently sitting on a “Greed” score of 69, a major recovery from three days ago when it indicated “Fear” with a score of 43.
Meanwhile, some traders expect Bitcoin’s price to remain stagnant in the near term, but they don’t necessarily view this as a bearish signal.
“The longer the Bitcoin consolidation takes, the higher its price will meet the trendline,” added pseudonymous crypto trader Titan of Crypto.
“Bitcoin’s previous cycle all-time highs tend to slow down price and make Bitcoin stall for some weeks,” pseudonymous crypto trader Daan Crypto Traders told his X followers in a May 4 post.
Source: Cointelegraph.com
