Bitcoin’s price may experience a bullish trend reversal and surge to new highs if the inverse head-and-shoulders pattern is confirmed, according to a crypto trader. The trader, Matthew Hyland, explained that if Bitcoin fails to break through $67.5k, the formation of this pattern over the next month could indicate a bottom pattern reversal. The inverse head-and-shoulders pattern is a bullish indicator that suggests the downtrend is easing and buyers are gaining dominance in the market. Hyland believes this setup would be ideal for propelling Bitcoin’s price higher. However, it is important for Bitcoin to maintain its bullish trend by staying above its short-term holder price of $59,500, according to pseudonymous crypto analyst Willy Woo.
The inverse head-and-shoulders pattern occurs when Bitcoin’s price forms three troughs below a neckline resistance, with the middle trough, known as the head, being deeper than the surrounding troughs. Bitcoin’s price has already rebounded slightly from the head at $58,614 and is expected to find support around its second shoulder at $60,000 if the pattern continues as Hyland’s model suggests. This decline would represent a 5% drop from its current price of $63,350. If Bitcoin reaches the $60,000 support level, it would liquidate $530 million in long positions.
Hyland’s model also predicts that Bitcoin may surpass its current all-time high of $73,800 by June if it rises above the neckline. Additionally, there is growing buyer interest in the crypto market, as indicated by the Fear and Greed Index, which currently shows a “Greed” score of 69. This is a significant recovery from just three days ago when the index indicated “Fear” with a score of 43.
Some traders believe that Bitcoin’s price may remain stagnant in the near term, but they do not consider this a bearish signal. They argue that the longer the consolidation period lasts, the higher the price will eventually rise to meet the trendline. It is common for Bitcoin’s price to stall for a few weeks after reaching previous cycle all-time highs.
Please note that this article does not provide investment advice or recommendations. Investors should conduct their own research before making any decisions.