Bitcoin’s price might witness a bullish reversal, igniting what one crypto trader calls the “next leg up,” should the inverse head-and-shoulders pattern, a well-regarded trading indicator, come into play.
Matthew Hyland, a crypto trader, shared his insights on May 4, suggesting that if Bitcoin doesn’t break through $67.5k directly, a scenario unfolding over the next month aligns with a potential bottom pattern reversal.
The inverse head-and-shoulders pattern, which he referenced, indicates a shift from a downtrend to a bullish phase, signaling increased buyer dominance.
“It would be a great setup to propel the next leg up,” Hyland asserted.
While maintaining Bitcoin’s bullish trend is contingent upon it staying above its short-term holder price of $59,500, noted pseudonymous crypto analyst Willy Woo emphasized to his 1.1 million followers on May 3.
The setup of this pattern emerges as Bitcoin’s price forms three troughs beneath a neckline resistance, with the middle trough (the head) deeper than the left and right shoulders.
Following a slight rebound from the “head” at $58,614 on May 1, if the pattern unfolds as per Hyland’s model, Bitcoin could find support around its second shoulder at $60,000, a critical level.
This projected decline would represent a 5% drop from its current price of $63,350, potentially leading to liquidation of $530 million in long positions, as per CoinGlass data.
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According to Hyland’s analysis, Bitcoin could surpass its current all-time high of $73,800 by June, aligning with increasing buyer interest in the crypto market, as evidenced by the Fear and Greed Index, which has recovered to a “Greed” score of 69 from a recent low of 43, indicating “Fear.”
Some traders anticipate Bitcoin’s price to remain stagnant in the short term, but they don’t perceive this as necessarily bearish.
“The longer the Bitcoin consolidation takes, the higher its price will meet the trendline,” noted pseudonymous crypto trader Titan of Crypto.
Echoing a similar sentiment, pseudonymous trader Daan Crypto Traders shared with his followers on X on May 4 that Bitcoin’s previous cycle all-time highs tend to decelerate price momentum, leading to temporary stalls.
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