The long awaited rally Bitcoin it could be upon us as the major crypto assets have formed an inverse head and shoulders pattern, a bullish technical indicator, indicating a potential breakout to the upside. Given the growing market optimism and currently developing sentiment, the pattern may be the impetus for BTC’s next rally.
Head and Shoulders Pattern Triggers Bitcoin’s Upside Breakout
Market expert and Crypto Banter show host, Kyle Doops, has it identified the opposite formation of the head and shoulders on the Bitcoin chart, which has caught the interest of crypto enthusiasts who speculate that there has been a major upward change in the price of BTC in the short term.
An inverse head and shoulders pattern means the end of a downtrend. This means that Bitcoin could be preparing for a possible price divergence to mark the complete end of the current one assembly phase. According to market experts, for more than 2 and a half years, BTC has been forming an inverse head and shoulders pattern against the S&P 500 (SPX), showing bullish movement in the near future.
Kyle Doops pointed out that the current development of the right shoulder indicates that there has not been a proper Bitcoin bull run in the last 3.5 years. In addition, the return of the leading crypto asset relative to the SPX has not changed since 2021.
Considering these developments, the market expert is confident about the prospects of BTC in the short and long term as he expects Get out in Q4 of this year, which may begin a “real bull run” against the equity markets.
Commentator too points to the future price increase of Bitcoin based on the Realized Value metric of Short Term holder and Long Term holder. This metricwhich shows the price at which various categories of owners are buying and selling BTC currently shows the increase in market confidence.
Kyle Doops highlighted that the price found for short term holders it officially broke above after 3 months of resistance, suggesting that a Bitcoin surge may be imminent. However, integration is essential to ensure reversal of the trend.
Therefore, the expert highlighted an important support level at $62,000 for investors to be aware of and a rising high to increase demand and confidence as they navigate the volatile market.
Is BTC’s Renewable Energy Declining?
Today, BTC faced a reversal that caused its price to drop from $64,000 to the $62,500 level. However, the crypto asset gradually finds an upward movement, returning to the $63,800 price mark.
At the time of writing, BTC has also reached $63,828, showing an increase of just 0.07% over the previous day. In other longer time frames such as 7-day and 1-month time frame, the coin rose by around 2.77% and 1.48% respectively.
Nevertheless, the BTC trading market value shows a worrying trend, falling more than 17% and 0.01% respectively in the last day according to data from CoinMarketCap.
Featured image from Unsplash, chart from Tradingview.com