Bitcoin will 'propel the next leg up' if key trading pattern confirms — Traders

Ciaran Lyons6 hours agoBitcoin will "propel the next leg up" if key trading pattern confirms — TradersThe inverse head and shoulders pattern forming "would make sense" if Bitcoin doesn"t "break straight through" $67,500, according to a crypto trader.6307 Total views31 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin’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 declared.

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.If the inverse head and shoulders pattern forms, Bitcoin"s price could dip to $60,000 support levels before hitting new all-time highs. Source: Matthew Hyland

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.Bitcoin is currently trading at $63,340. Source: CoinMarketCap

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 a bearish signal.

“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.# Bitcoin# Cryptocurrencies# Bitcoin Price# Adoption# Trading# Bitcoin TraderAdd reaction