Bitcoin will 'propel the next leg up' if key trading pattern confirms — Traders
Bitcoin’s (BTC) 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 declares.
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.
Related: Bitcoin opens $63K futures gap as thin liquidity threatens BTC price
Meanwhile, some traders expect Bitcoin's price to remain stagnant in the near term, but they don't necessarily view this as negative.
“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.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
