Could Bitcoin Be Starting An Uptrend?

A crypto investor has indicated that an inverse head and shoulders pattern may be forming on the Bitcoin price chart.

According to a crypto trader, the inverse head and shoulders pattern, a popular technical analysis indicator, could confirm the potential for Bitcoin's price to continue rising in the coming period.

Crypto influencer Matthew Hyland shared in a post on the X platform on May 4th, "If we don't directly break through $67,500, it would make sense for such a formation to occur over the next month as it would signify a reversal from the bottom formation."

Referring to the inverse head and shoulders formation, Hyland added:

"It could be a great setup for moving on to the next stage."

Crypto analyst and founding partner of CMCC Crest, Willy Woo, emphasized on May 3rd to his 1.1 million followers that maintaining above the short-term support level of $59,500 is crucial for Bitcoin to "continue its upward trend."

The formation occurs when the Bitcoin price forms three troughs below a resistance level known as the neckline; here, the middle trough (also called the head) is deeper than the two on either side (the shoulders).

On May 1st, the Bitcoin price showed some recovery from the "head" level of $58,614. According to Matthew Hyland's model, if the development continues, around the second shoulder, support may be found at the significant level of $60,000.

According to CoinMarketCap data, this decline indicates a 5% decrease from the current price of $63,350. Falling to this level, according to CoinGlass, will lead to the liquidation of long positions worth $530 million.

According to Hyland's model, if Bitcoin breaks above the neckline and surpasses the all-time high of $73,800 by June, it could signify a major bullish milestone.

Additionally, according to the Fear and Greed Index, buying interest in the crypto market is gradually increasing. The index currently stands at a "Greed" score of 69, a significant improvement from a "Fear" score of 43 just three days ago.

While some traders expect Bitcoin's price to remain stagnant in the short term, they do not see this as a definitive signal of a downturn.

Titan of Crypto shared, "The longer Bitcoin's consolidation phase lasts, the higher it will meet the trend line."

Daan Crypto Traders stated in a post on May 4th to their followers on X, "Bitcoin's previous cycle tends to slow down the price at all-time highs and cause Bitcoin to pause for several weeks."

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