As a seasoned financial analyst with extensive experience in the cryptocurrency market, I find the current technical analysis of Bitcoin’s (BTC) price trend intriguing but also cautiously optimistic. The inverse head and shoulders pattern on the four-hour chart is a bullish sign that could lead to a potential breakout if the trendline is surpassed. However, this bullish outlook may be influenced by the technical indicators alone.
As a financial analyst closely monitoring Bitcoin’s (BTC) market movements, I’ve observed a widely-followed chart pattern indicating a potential breakout from its current price range for Bitcoin. Nevertheless, it is essential to consider this week’s macroeconomic news, which could potentially influence Bitcoin’s price direction significantly. Therefore, while there are indications of an upside breakout for Bitcoin, it’s crucial to remain cautious and keep a close eye on the evolving economic landscape.
Is a Bitcoin breakout imminent?
In the context of a four-hour Bitcoin price chart, a technical analysis pattern emerged: an inverted head and shoulders formation. This is a widely-used indicator among market technicians signaling the potential reversal of a prior price decline.
As a crypto investor, I’ve been closely watching Bitcoin’s technical formation. Based on my analysis, if Bitcoin manages to break above its current trendline in the coming days, we could be in for an upside rally. This is according to my May 13 X post.
“Inverse head and shoulders pattern spotted on the $BTC chart. Not the most beautiful iH&S I’ve ever seen, but I’ll take it. Different ways to draw the neckline too, but this way makes the most sense to me. Break the neckline for further price recovery!”
Bitcoin has almost restored certain crucial technical markers, such as the Moving Average Convergence Divergence (MACD) line, which is employed to assess the shifting momentum and trend direction of an asset. According to the anonymous crypto analyst Jelle, who penned a May 13 blog post, this could potentially lead to further price growth.
“Bitcoin has nearly completed a full reset. Back to the 100-day EMA, a bullish MACD cross (below the zero line) — and the first higher low in a long time. It’s looking good.”
On the day-to-day Bitcoin chart, the relative strength index (RSI), which measures the magnitude of recent price movements to determine if an asset is overbought or oversold, was at 49. This represents a rise from 33 on May 1. The RSI reading of 49 suggests that Bitcoin’s current price is around its fair value.
According to a recent post on the cryptocurrency platform X, pseudonymous trader Mags, who has a following of 74,200 people, anticipates a price breakout for digital assets based on technical indicators depicted in a shared chart. This expectation aligns with previous predictions.
Although Bitcoin’s price chart looks optimistic, there’s still uneasiness among investors regarding its outlook. Notably, this week’s economic news, including the release of the Consumer Price Index (CPI) on May 14, could significantly influence Bitcoin’s price trend in the near term. As Matt Bell, CEO of Turbofish, shared with CryptoMoon.
“While the 4-hour chart hints at a potential trend reversal with the Inverse Head and Shoulders formation, it’s crucial to note that Bitcoin’s price action is tightly bound within a narrow trading range… Factors like United States macro data and insights from Jerome Powell, chair of the Federal Reserve, could introduce a new wave of volatility to the crypto market.”
Bitcoin at $56K marked local bottom: analyst
According to well-known cryptocurrency analyst Rekt Capital, the recent dip in Bitcoin’s price down to $56,000 might have signaled the local minimum. He expressed this viewpoint in a May 13 blog post.
“If $56,000 was not the bottom then this current pullback will have officially equaled the longest retrace in this cycle at 63 days. History however suggests that this current pullback ended at $56,000 and 47 days.”
Additionally, Bitcoin surpassed $65,000 on May 6, marking the end of its danger zone in terms of distribution.
Bitcoins advance is met with considerable opposition around the $63,500 and $63,700 price points. Over $516 million in combined short positions would be liquidated if Bitcoin surpasses $63,700, as indicated by data from Coinglass.
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2024-05-13 19:26