The long awaited rally Bitcoin could be on us as the largest crypto asset has formed an inverted head and shoulders pattern, a bullish technical indicator that signals a potential breakout to the upside. Given the growing market optimism and improving sentiment, this pattern could be the trigger for another BTC rally.
Head and Shoulders Pattern Triggers Upward Breakout for Bitcoin
Market expert and host of Crypto Banter, Kyle Doops, has quoted an inverted head and shoulders formation on the Bitcoin chart that has caught the attention of cryptocurrency enthusiasts speculating that there will be a huge upward move in the price of BTC in the tiny term.
The inverted head and shoulders pattern marks the end of a downtrend. It simply means that Bitcoin may be preparing for a possible price breakout to mark the complete end of the current Consolidation Phase. According to a market expert, BTC has been forming an inverted head and shoulders pattern against the S&P 500 (SPX) index for over 2.5 years, which indicates bullish move in the near future.
Kyle Doops noted that the current development of the right shoulder suggests that there has been no proper bull run for Bitcoin over the past 3.5 years. Furthermore, the flagship crypto asset’s returns relative to SPX have remained unchanged since 2021.
Considering these events, the market expert is confident about BTC’s prospects in the tiny and long term as he expects breakout in the fourth quarter of this year, which could start a “real bull market” in customary markets.
The analyst too points to upcoming Bitcoin price augment based on the short-term and long-term holder realized price indicator. This metricwhich shows the average price at which different categories of holders buy and sell BTC, currently reflects growing market confidence.
Kyle Doops emphasized that the realized price tiny term holders has officially broken above 3 months of resistance, suggesting that a rally in Bitcoin may be imminent. However, consolidation is needed to confirm this trend reversal.
The expert highlighted that the key support level at $62,000 is what traders should be paying attention to, and the rising high should boost demand and confidence as they navigate the volatile market.
Is BTC’s renewed strength weakening?
Today, BTC encountered a setback that caused its price to fall from $64,000 to $62,500. However, the crypto asset is gradually experiencing an upward movement, regaining the $63,800 level.
At the time of writing, BTC has rebounded to $63,828, which is just 0.07% up over the past day. On other longer time frames like the 7-day and 1-month, the coin is up around 2.77% and 1.48%, respectively.
Despite this, BTC trading volume market capitalization has been on a worrying trend, falling by over 17% and 0.01% respectively over the past day, according to CoinMarketCap data.
Featured image from Unsplash, chart from Tradingview.com
