Bitcoin ‘Moves Next Leg Up’ If Key Trading Pattern Confirms – Traders
If a popular trading indicator known as a reversal head-and-shoulders pattern is confirmed, Bitcoin (BTC) price could reverse the bullish trend and “could take the next leg higher,” according to a crypto trader.
“If we don't break straight at $67.5k, something like this next month would make sense for a reversal of the underlying pattern.
It indicates a reversal of the head and shoulders pattern – that the downtrend is easing and buyers are dominating the market.
“It's a good preparation for the next leg up,” he said.
Although it's important for Bitcoin to “maintain its bullish trend,” its short-term holding price above $59,500 is crucial, anonymous crypto analyst and co-founder of CMCC Crest Willie Wu told his 1.1 million X followers on May 3.
The setup shows Bitcoin price forming three troughs below the so-called neckline resistance, while the middle trough – otherwise known as the head – is deeper than the left and right shoulders.
The price of Bitcoin recovered from the “head” at $58,614 on May 1, and if the pattern continues as a highland model, it will find support around the second shoulder, at $60,000 – a key support level.
The decline represents 5% from its current price of $63,350, according to CoinMarketCap data. A drop to this level would cost $530 million in long positions, according to CoinGlass data.
According to Highland's model, Bitcoin could rise above the neckline and surpass the current all-time high of $73,800 in June.
On top of that, according to the index of fear and greed, the interest of buyers in the crypto market is gradually increasing.
The index currently stands at 69 points for “Greed”, after a big recovery three days ago when it indicated “Fear” at 43 points.
Related: Bitcoin opens $63K futures gap as thin liquidity threatens BTC price
Meanwhile, some traders expect Bitcoin's price to remain stagnant in the near term, but they don't see this as a bearish sign.
“The longer the Bitcoin consolidation lasts, the higher the price will meet the trendline,” added the fictional crypto trader Titan of Crypto.
“Bitcoin's previous all-time high will cause the price to slow down and put Bitcoin on hold for a few weeks.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
