Bitcoin’s price has the potential to experience a bullish trend reversal and surge to new highs if the inverse head-and-shoulders pattern, a popular trading indicator, is confirmed, according to a crypto trader. The trader, Matthew Hyland, explained in a post on X that if Bitcoin fails to break through the $67.5k mark, the formation of an inverse head-and-shoulders pattern over the next month could indicate a bottom pattern reversal. This pattern signals a decrease in the downtrend and an increase in buyer dominance in the market, making it a great setup for a price surge.
While it is important for Bitcoin to maintain its bullish trend by staying above the short-term holder price of $59,500, crypto analyst Willy Woo advised his followers on X that the confirmation of the inverse head-and-shoulders pattern could result in a dip to $60,000 support levels before reaching new all-time highs.
The inverse head-and-shoulders pattern forms when Bitcoin’s price creates three troughs below a neckline resistance, with the middle trough, known as the head, being deeper than the two shoulders. Bitcoin’s price has already rebounded slightly from the head at $58,614, and if Hyland’s model is accurate, it will find support around the second shoulder at $60,000. This decline would represent a 5% drop from the current price and lead to the liquidation of $530 million in long positions.
According to Hyland’s model, Bitcoin could surpass its current all-time high of $73,800 and rise above the neckline by June. Additionally, the Fear and Greed Index indicates that buyer interest in the crypto market is gradually increasing, as it currently sits at a “Greed” score of 69, a significant recovery from a “Fear” score of 43 just three days ago.
Some traders anticipate that Bitcoin’s price will remain relatively stable in the near future, but they do not necessarily view this as a bearish signal. In fact, pseudonymous trader Titan of Crypto believes that the longer the consolidation period lasts, the higher Bitcoin’s price will ultimately reach. This is a common occurrence during Bitcoin’s previous cycle all-time highs, which tend to slow down price and cause temporary stalls.
Disclaimer: This article does not provide investment advice or recommendations. It is important for readers to conduct their own research and make informed decisions when it comes to investments and trading, as they involve inherent risks.