Chart Patterns Identify Explosive BTC Levels to Watch

Bitcoin (BTC) continues to hold on to the $67,000 mark with bears and bulls failing to significantly push the price of the premier cryptocurrency in either direction.

Amid the impasse, crypto trading expert Trading shot pointed out that chart patterns indicate a possible explosive breakout in Bitcoin prices.

In a Trading View In a May 31 post, the expert noted that Bitcoin is poised to complete the right shoulder of the inverse head and shoulders (IH&S) pattern, a bullish indicator that emerged after the cryptocurrency's all-time high on March 14 .

The IH&S pattern, a well-known bullish reversal formation, suggests a shift from a downtrend to an uptrend. The training includes three parts: left shoulder, head and right shoulder. Therefore, completing the right shoulder signals the potential start of a significant upward movement.

Additionally, the current price movement is contained within an ascending channel. This “Channel Up” pattern showed a previous bullish leg peaking at 19.50%, followed by two bearish legs of around -8% each, reinforcing the structural symmetry of Bitcoin’s price movements.

Resilience of support zones

The analysis also highlighted distinct areas of support and resistance within the IH&S pattern. The first support zone has shown resilience, holding firm twice since May 23. This suggests strong buying interest at this level, providing a basis for the expected upward move.

At the same time, the analyst noted that the 50-day moving average is another critical indicator. As long as the Bitcoin price remains above this moving average, the uptrend is likely to persist, likely peaking with a price near the $80,000 level.

“As a result, as long as it holds with the 1D MA50, the trend remains bullish and IH&S technical momentum targets the 2.0 Fibonacci extension at $89,000. However, we are keeping a shorter-term perspective at the moment, and before 89k we will target $79,500, which would represent an upside of +19.50%, similar to the previous uptrend leg of the Channel,” said l 'expert.

Bitcoin's failed attempt towards $70,000

It is worth noting that Bitcoin returned above the $67,000 level after an unsuccessful attempt to reclaim the $70,000 mark in the last 24 hours. Notably, Bitcoin reached $69,000 on May 31, but failed to maintain this position.

That rise eased after the latest data on U.S. gross domestic product came in at 1.3% for the first three months of the year, missing the forecast of 1.6%. The data implies that U.S. consumers are spending less, leading to uncertainty about the future of the U.S. economy.

Indeed, Bitcoin also corrected following a hacking incident that affected Japanese cryptocurrency exchange DMM Bitcoin, which lost over $300 million worth of Bitcoin.

Amid the current Bitcoin price action, Michaël van de Poppe, founder and CEO of MNTradingnoted that the market is in balance and investors should watch the crucial $66,000 level.

Bitcoin Price Analysis

At the time of writing, Bitcoin was trading at $67,620, following a correction of around 0.80% over the past 24 hours. On the weekly chart, Bitcoin is down more than 2%.

Overall, according to expert projections, investors are hoping that Bitcoin's next price action will align with the post-halving bull rally.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.