Traders suggest Bitcoin could drive the next upward surge if a key trading pattern is confirmed.
According to a cryptocurrency trader, the formation of an inverted head-and-shoulders pattern “would make sense” if Bitcoin does not “break straight through” $67,500.
“Bitcoin’s BTC The ticker has dropped to $64,283. According to a crypto trader, if the popular trading signal known as the inverse head-and-shoulders pattern is confirmed, price might witness a positive trend reversal and “propel the next leg up”.
“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 wrote in a May 4 post on X.”
He’s referring to the inverse head-and-shoulders pattern, a bullish indicator that indicates the downturn is slowing and buyers are gaining ground in the market.
“It would be a great setup to propel the next leg up,” he said.
While maintaining its positive trend requires Bitcoin to stay above its short-term holding price of $59,500, pseudonymous crypto analyst and co-founder of CMCC Crest Willy Woo informed his 1.1 million X followers on May 3.
The price of bitcoin has somewhat recovered from the May 1 “head” of $58,614, and if Hyland’s model is correct, the pattern should continue to support the cryptocurrency at a crucial support level of $60,000, or around its second shoulder.
A projected 5% decrease from Bitcoin’s current value of $63,350 could result in the liquidation of approximately $530 million in long positions. This potential decline underscores the volatility within leveraged trading, where even slight movements can impact large sums.
By June, Bitcoin might break above the neckline and surpass its all-time high of $73,800, based on Hyland’s model.
The index, which three days earlier showed “Fear” with a score of 43, is now showing “Greed” with a score of 69, a significant improvement.
Related: The price of Bitcoin is threatened by little liquidity, thus it opens a $63K futures gap.
Although some traders don’t necessarily see this as a gloomy indication, they do anticipate that Bitcoin’s price will remain flat in the near future.
“Titan of Crypto, an anonymous cryptocurrency trader, continued, saying that “the longer the Bitcoin consolidation takes, the higher its price will meet the trendline.”
In a post dated May 4, anonymous cryptocurrency trader Daan Crypto Traders warned his X followers that “Bitcoin’s previous cycle all-time highs tend to slow down price and make Bitcoin stall for some weeks.”
