- Popular crypto trader Matthew Hyland has suggested the formation of an inverse head and shoulders pattern on the Bitcoin price chart.
- If confirmed, this popular technical analysis indicator could signal a continued rise for Bitcoin in the future.
- Crypto analyst and co-founder of CMCC Crest, Willy Woo, has also highlighted the critical importance of Bitcoin maintaining a short-term support level of $59,500 to sustain its bullish trend.
Bitcoin could be set for a continued rise if a popular technical analysis indicator, the inverse head and shoulders pattern, is confirmed on its price chart, according to crypto trader Matthew Hyland.
Analysts Highlight Key Levels for Bitcoin (BTC)
Matthew Hyland, a popular crypto trader, has suggested that an inverse head and shoulders pattern could form on the Bitcoin price chart. This pattern, if confirmed, could signal a continued rise for Bitcoin in the future. Hyland stated in a post on May 4th, “If we don’t directly break $67,500, it would make sense for something like this to form over the next month as a reversal of the bottom formation.”
Bitcoin’s Potential Rise
The inverse head and shoulders pattern forms when three troughs are created below a level referred to as the neckline resistance, with the middle trough (also known as the head) being deeper than the left and right shoulders. Bitcoin’s price began to recover from the “head” level of $58,614 on May 1st. If it continues in the manner suggested by Hyland’s model, it will find support around $60,000, a significant support level, for the formation of the second shoulder. According to CoinMarketCap data, this decline equates to a 5% loss in value from the current price of $63,350. According to CoinGlass data, a pullback to this level would liquidate $530 million worth of long positions.
Conclusion
If Bitcoin rises above the neckline and continues in the manner suggested by Hyland’s model, it could surpass its all-time high of $73,800 by June. Additionally, buyer interest in the crypto market is slowly increasing according to the Fear and Greed Index. The index currently sits at a “Greed” level of 69, a significant improvement from the “Fear” score of 43 just three days ago. However, it’s important to note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.
