As a seasoned analyst with a decade-long experience in the financial markets, I have seen my fair share of market cycles and chart patterns. Bitcoin’s current sideways price action may be causing some uneasiness among traders, but I believe there is still room for optimism.
Bitcoin has been experiencing a sluggish period following its peak in mid-March, with prices showing little signs of significant progress. However, three potential chart formations emerge, suggesting the possibility of substantial price increases.
Bitcoin’s price action remains calm as it enters its 15th week of sideways and mildly decreasing trends. The belief that Bitcoin hit the peak of its ongoing bull market in March and has been gradually losing steam since then is gaining traction among social media users.
As an analyst, I’ve observed that Bitcoin’s bull trend remains intact despite recent corrections. Compared to previous market upswings, this current correction appears less intense. Bitcoin presently hovers around 11% below its all-time high, indicating a relatively stable position in the market. Consequently, there seems to be minimal cause for concern at this moment.
As an analyst, I’ve noticed some intriguing chart patterns emerging while Bitcoin exhibits sideway price action. If these patterns materialize, we can expect a significant shift in Bitcoin’s price movement, leading to an exhilarating phase of price action.
Inverse head and shoulders
With the least probable outcome among the three chart patterns, an inverse head and shoulders formation in Bitcoin’s price chart may not materialize. The current price sits precariously near the neckline of the pattern. If a daily candle closes below this level, the entire pattern would lose validity. However, it is essential to note that the pattern remains active. Should Bitcoin rebound from its present position and reach the target price, a new all-time high for Bitcoin at approximately $75,000 will be established.
Bull flag
A bull flag is an extremely bullish chart pattern, particularly noticeable on larger time frames. When this formation appears, if we measure the height of the flagpole from the $38,500 BTC price in January 2021, the projected target reaches approximately $94,000.
Cup and handle
As a crypto investor, I’m excited about the potential of Bitcoin’s current setup based on the cup and handle chart pattern. This is a significant pattern that forms from the peak of the previous bull market in 2021, followed by a year-long bear market until 2023, and now the ongoing bull market leading up to the all-time high in March. Currently, we’re seeing the formation of the handle, which could still experience some more sideways price action before a potential breakout.
If the Bitcoin price manages to surpass the $71,500 mark, the ensuing bullish pattern might initiate an uptrend. Based on this technical formation’s historical precedent, a potential rise to approximately $126,000 could be anticipated from the cup’s base to the neckline.
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2024-06-17 13:06