Bitrabo Editorial
Excitement is building for a potential Bitcoin rally as the cryptocurrency seems to be following an inverse head and shoulders pattern, which is a positive technical sign indicating an upcoming price surge. With rising market positivity and better sentiment, this pattern could kickstart BTC’s next upward movement.
Bullish Indicators Suggest Possible Bitcoin Breakout
Market analyst Kyle Doops, known from the Crypto Banter show, has pointed out the formation of an inverse head and shoulders pattern on Bitcoin’s charts, sparking speculation among crypto fans that a significant price increase could happen soon.
This inverse head and shoulders setup signifies a shift from a downward trend and implies that Bitcoin may be gearing up for a price breakout, marking the end of its current consolidation phase. Notably, Kyle mentions that this pattern has been developing for over 2.5 years in relation to the S&P 500 (SPX), indicating a promising bullish move is ahead.
He also notes that the right shoulder’s current development shows that Bitcoin has not experienced a real bull run in the last 3.5 years. Moreover, the returns on Bitcoin with respect to SPX have remained unchanged since 2021.
Given these trends, the analyst is optimistic about Bitcoin’s short and long-term prospects, anticipating a breakout in the fourth quarter, which could lead to a significant “real bull run,” especially against traditional financial markets.
Kyle also highlights a potential price increase for Bitcoin as reflected by the Short-Term and Long-Term holder’s Realized Price metric, which shows the average price for different holder categories when buying and selling BTC. This metric currently suggests growing market confidence.
He explains that the realized price for short-term holders has recently surpassed three months of resistance, hinting at a possible rise in Bitcoin’s price. However, he emphasizes the need for consolidation to confirm this trend reversal.
Consequently, he underscores a vital support level at $62,000 that investors should monitor, alongside a rising peak to bolster demand and confidence in this volatile market.
Is Bitcoin’s Recent Strength Diminishing?
Today, Bitcoin experienced a decline, dropping from $64,000 down to approximately $62,500, although it has begun to recover slowly to around $63,800.
Related Reading: Bitcoin Analyst Warning: Selling BTC At $73,800 Will Be “Disastrous”
As of this writing, Bitcoin has bounced back to $63,828, indicating a slight increase of 0.07% in the past day. Over longer periods, such as a week and a month, the coin has appreciated by approximately 2.77% and 1.48% respectively.
Despite this, the trading volume and market cap of Bitcoin are showing concerning signs, experiencing declines of over 17% and 0.01% respectively in the last day, based on CoinMarketCap data.