Bitcoin Price Could See Bullish Reversal, Exceed Current Highs: Crypto Analyst
Summary:
Crypto analyst Matthew Hyland suggests Bitcoin's price could witness a bullish trend reversal and trigger fresh growth if it validates the inverse head and shoulders trading pattern. This suggests a slowing downtrend and increasing buyer dominance. However, Bitcoin needs to stay above its immediate holder value of $59,500 to continue its bullish streak. Despite a potential dip to the $60,000 support level, Hyland’s model projects Bitcoin could surpass its current all-time high of $73,800 by June. Consumer interest in the crypto market is gradually rising according to the Fear and Greed Index. However, some traders forecast static short-term Bitcoin prices, which they do not necessarily view as a disadvantage.
The digital currency Bitcoin (BTC) may observe a bullish trend shift and instigate the next phase of growth if it validates the trading indicator called the inverse head and shoulders pattern, states crypto analyst. "A scenario like this taking shape over the forthcoming month would make sense as a bottom pattern reversal if we can't breach straight through the $67.5k barrier," explained crypto speculator Matthew Hyland in a post on X on May 4. He was commenting on the inverse head and shoulders pattern, a positive indicator that suggests the decline is slowing and purchasers are gaining market dominance. "This would be an ideal configuration to initiate the next upward phase," he maintains.
Regardless, it's imperative that Bitcoin retains above its immediate holder value of $59,500 to sustain its bullish streak, noted pseudonymous crypto speculator Willy Woo on May 3 to his 1.1 million X followers. If the inverse head and shoulder pattern materializes, Bitcoin's value may slightly plunge to the support level of $60,000 before achieving new peak levels, (source: Matthew Hyland). This pattern arises when three lows form beneath an alleged neckline resistance in Bitcoin’s price, with the center low, also called the head, being deeper than the left and right shoulders.
Bitcoin’s value has made a minor recovery from the “head" of $58,614 as of May 1, and according to Hyland’s model, it will reach the support at its second shoulder, at $60,000, a pivotal support level, if the pattern continues. This fall constitutes a 5% drop from its existing price of $63,350 based on CoinMarketCap’s information. Descending to this level would wipe out $530 million in long positions per data from CoinGlass. Currently, Bitcoin is trading at $63,340 (source: CoinMarketCap).
Hyland's model suggests that Bitcoin could surpass the neckline and break its standing all-time high of $73,800 by June. Concurrently, consumer attraction in the crypto market is slowly on the rise as per the Fear and Greed Index. Currently, the index is at a "Greed" rating of 69, a substantial improvement from its "Fear" rating of 43 three days ago.
However, some traders predict Bitcoin's price to remain unchanged in the near future but don't perceive this as a drawback. "The more extended the consolidation of Bitcoin, the higher its price will align with the trendline,” remarked pseudonymous crypto trader Titan of Crypto. “Bitcoin's past cycle peak values tend to decelerate the price, resulting in Bitcoin stalling for several weeks,” shared pseudonymous crypto trader Daan Crypto Traders to his X followers in a post on May 4. Despite these prognoses, this news article does not provide investment guidance nor recommendations. All trading and investment maneuvers impose risk, thus readers are advised to carry out their own research prior to making a decision.
Published At
5/5/2024 5:52:50 AM
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