Some analysts have observed an ‘inverse head and shoulders’ pattern on the bitcoin chart. This is a positive sign that suggests the downtrend is easing and a possible big price increase is coming. If this pattern is confirmed, Bitcoin could make a significant jump higher. But above what price levels does the bitcoin price have to rise to confirm this pattern?
Matthew Hyland sees bullish inverse head and shoulders for bitcoin
Crypto trader Matthew Hyland commented on social media platform He emphasized that such a development would be an excellent setup to “push the next step.”
Hyland describes the pattern as typically consisting of three troughs below a so-called neckline resistance. The middle valley, known as the head, is deeper than the two shoulders on the sides. According to Hyland’s observations, bitcoin has already recovered from its recent low or ‘head’ at $58,614 on May 1. He suggests that if the pattern continues, bitcoin should find support around its second shoulder at around $60,000—a crucial support level.
The potential impact of the pattern on the bitcoin price
The consequences of this pattern can be significant. Failure to maintain prices above $59,500, which is considered a critical price for short-term holders, could undermine the positive trend, as noted by pseudonymous crypto analyst and co-founder of CMCC Crest, Willy Woo, to his 1.1 million followers at 3rd of May.
Moreover, if bitcoin’s price trend follows Hyland’s model, it could not only rise above the neckline but also potentially surpass its all-time high of $73,800 in June. This optimistic scenario coincides with increasing buyer interest in the market, as indicated by the recent shift in the Fear and Greed Index from a score of “Fear” 43 to a score of “Greed” 69.
Not everyone is equally optimistic about the bitcoin price forecast
However, not all traders share this optimistic view. Some expect the price of bitcoin to remain relatively stable in the short term. This is not necessarily seen as a negative signal, as periods of price consolidation can lead to significant breakouts. “The longer Bitcoin’s consolidation lasts, the higher its price will be at the trendline,” explained Titan of Crypto, another pseudonymous trader.
