The much-anticipated rally for Bitcoin could be upon us as the largest crypto asset has formed an inverse head and shoulders pattern, a bullish technical indicator, signaling a potential breakout on the upside. Given the growing market optimism and improving sentiment currently, the pattern may serve as the impetus for BTC’s next rally.
Head And Shoulders Pattern Sparks Upside Breakout For Bitcoin
Market expert and host of the Crypto Banter show, Kyle Doops, has cited an inverse head and shoulders formation on the Bitcoin chart, which has captured the interest of crypto enthusiasts who speculate that a huge upward shift in BTC’s price in the short-term.
An inverse head and shoulders formation denotes the end of a declining trend. This simply means that Bitcoin might be preparing for a possible price breakout to mark the complete end of the current consolidation phase. According to the market expert, for more than 2 and half years, BTC has been forming the inverse head and shoulders pattern against the S&P 500 (SPX), hinting at a bullish move in the near future.
Kyle Doops pointed out that the current development of the right shoulder suggests that there has not been a proper Bitcoin bull run in the past 3.5 years. In addition, returns of the flagship crypto asset in relation to the SPX have not been altered since 2021.
Considering these developments, the market expert is confident about BTC’s prospects in the short and long term as he expects a breakout in Q4 of this year, possibly igniting the “real bull run” against legacy markets.
The analyst also points to an impending price surge for Bitcoin based on the Short-Term holder’s and Long-Term holder’s Realized Price metric. This metric, which shows the average price at which various categories of holders are buying and selling BTC is presently depicting increasing market confidence.
Kyle Doops highlighted that the realized price for short-term holders has officially broken out above after 3 months of resistance, suggesting that a Bitcoin surge might be imminent. However, consolidation is essential to validate this trend reversal.
Thus, the expert has underlined a crucial key support level at $62,000 for investors to watch out for and a rising peak to increase demand and confidence as they navigate the volatile market.
Is BTC’s Renewed Strength Waning?
Today, BTC faced a setback that caused its price to fall from $64,000 to the $62,500 level. However, the crypto asset is gradually experiencing an upward movement, recovering to the $63,800 price mark.
Related Reading: Bitcoin Analyst Warning: Selling BTC At $73,800 Will Be “Disastrous”
At the time of writing, BTC has rebounded to $63,828, indicating a mere increase of 0.07% in the past day. In other longer time frames like the 7-day and 1-month time frame, the coin has risen by about 2.77% and 1.48% respectively.
Nevertheless, BTC’s trading volume market cap is demonstrating a worrisome trend, falling by over 17% and 0.01% respectively in the past day according to data from CoinMarketCap.
Featured image from Unsplash, chart from Tradingview.com