Bitcoin

when

Bitcoin’s (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) 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 <a href="https://twitter.com/MatthewHyland_/status/1786756647945220258/photo/1" target="_blank" rel="noopener nofollow">post</a> on X.
He is referring to the inverse head-and-shoulders pattern — a bullish indicator that 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 <a href="https://x.com/woonomic/status/1786205333444239788" target="_blank" rel="noopener nofollow">told</a> his 1.1 million X followers on May 3.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/9d7a3349-bbe6-4ec2-a5a8-d265b5496644.png" alt="" title="">
 <figcaption style="text-align: center;">
 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
 </figcaption>
</figure>
The setup appears when Bitcoin’s price forms three troughs below a so-called neckline resistance, with the middle — otherwise known as the head — deeper than the left and right shoulder.&nbsp;
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&nbsp;— a key support level.
The decline would represent a 5% from its current price of $63,350, <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener nofollow">according</a> to CoinMarketCap data. Dropping to this level would liquidate $530 million in long positions, <a href="https://www.coinglass.com/pro/dashboard/bitcoin" target="_blank" rel="noopener nofollow">according</a> to CoinGlass data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/ff3704a7-913d-464a-8ea5-540bebdd90f8.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin is currently trading at $63,340. Source: CoinMarketCap
 </figcaption>
</figure>
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 <a href="https://alternative.me/crypto/fear-and-greed-index/" target="_blank" rel="noopener nofollow">Index</a>.
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: <a href="https://cointelegraph.com/news/bitcoin-opens-63k-futures-gap-thin-liquidity-btc-price">Bitcoin opens $63K futures gap as thin liquidity threatens BTC price</a>
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,” <a href="https://x.com/Washigorira/status/1786063670960697550" target="_blank" rel="noopener nofollow">added</a> 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 <a href="https://x.com/DaanCrypto/status/1786848773513367949" target="_blank" rel="noopener nofollow">post</a>.
Magazine: <a href="https://cointelegraph.com/magazine/meme-coins-betrayal-crypto-ideals-or-true-purpose/">Meme coins: Betrayal of crypto’s ideals… or its true purpose?</a>
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 will ‘propel the next leg up’ if key trading pattern confirms — Traders

Cointelegraph

Other articles published on May 5, 2024

Bitcoin (BTC) Price Consolidation: What’s Next? Expert Analysts Weigh In!

Apple’s Record-Breaking $110 Billion Stock Buyback: What it Means for Bitcoin (BTC) and Cryptocur...

Weekly Crypto Digest: Bitcoin (BTC) Price Swings, Ripple (XRP) Lawsuit Progress, and CZ’s Legal D...

Bitfinex (BFX) Under Fire: Data Breach Impacts 400,000 Crypto Traders – Coinpedia Breakdown

Golem (GLM) and PlayDapp (PDA) Crypto Prices Pumping, Here’s Why

Bitfinex CTO Debunks Data Breach Rumors On The Crypto Exchange

Join our free newsletter for daily crypto updates!