Chart Patterns Identify Explosive BTC Levels to Watch – Crypto News BTC

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

Amid the impasse, a crypto trading professional Trading shot identified that chart patterns indicate a possible explosive breakout in the Bitcoin price.

In a Trading View In a May 31 post, the expert noted that Bitcoin is close to reaching the true shoulder of the Inverted Head and Shoulders (IH&S) pattern, a bullish indicator that emerged after the cryptocurrency's all-time high on the 14th. March.

The IH&S sample, a well-known bullish reversal formation, suggests a shift from a downtrend to an uptrend. The formation contains three elements: left shoulder, top and precise shoulder. Therefore, the end of the actual shoulder indicates the potential start of a major upward movement.

Additionally, the current price action 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.

Helping areas with resilience

The assessment also highlighted distinct areas of support and resistance within the IH&S sample. Support zone one has shown resilience, holding firm twice since May 23. This signifies strong buying of interest at this level, providing a basis for the expected upward movement.

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

“For this reason, as long as it remains consistent with the 1D MA50, the trend remains bullish and IH&S technical momentum targets the 2.0 Fibonacci extension to $89,000. Nevertheless, we maintain a shorter time perspective for the moment, and before 89k we will target $79,500, which represents an upside of +19.50%, just like the previous bullish leg of the Channel,” said the 'expert.

Bitcoin's failed attempt towards $70,000

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

The rise eased after the latest data on US gross domestic product came in at 1.3% for the first three months of the year, compared to a forecast of 1.6%. The data implied that American consumers were spending significantly less, casting doubt on the future of the American economy.

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

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

Bitcoin Value Assessment

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

Overall, amid professional projections, investors are hoping that Bitcoin's next price movement aligns with the post-halving bull rally.

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