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Bitcoin (BTC), which recorded small gains throughout the week, has settled into a steady trading range. As September, a month traditionally dominated by declines for cryptocurrencies, moves towards a positive outcome, the significant deviation of the largest cryptocurrency from historical norms is particularly noteworthy. As the end of a volatile month approaches, experienced market analyst Peter Brandt shed light on potential bullish indicators as October, known as “Uptober,” or the month of ascent, draws closer.
Bitcoin Bulls May Be Awakening
Brandt shared a Bitcoin chart indicating a bullish signal from his personal X account in the late hours of September 28. The market analyst added the note, “Bitcoin at the lowest ADX value since July 2020. The bottom of the underlying Head and Shoulders formation was retested for the second time. Now, a small 6-week Inverse Head and Shoulders formation is possible. Could the bulls be awakening?”
Brandt’s note focused particularly on two key elements; the lowest ADX value since July 2020, indicating a decline in overall market strength, and the potential formation of a small 6-week Inverse Head and Shoulders formation.
The Inverse Head and Shoulders formation, in particular, often serves as a potential indicator that the trend may soon turn bullish, signaling a shift towards a sentiment of ascent in the short term. If the highlighted formation works, the price of BTC could rise to the $30,000 range.
Market Analyst Gareth Soloway Warns of “Shoulder” Formation
Brandt is not the only market analyst painting a positive picture for Bitcoin with his analysis. Gareth Soloway, the founder of Investing, also expressed his optimism about the largest cryptocurrency’s potential rise in the coming weeks. Soloway mentioned the possibility of an Inverse Head and Shoulders formation if certain conditions, such as the approval of a Bitcoin exchange-traded fund (ETF), are met.
However, it should be noted that this formation is not typically an Inverse Head and Shoulders formation, which often implies further price declines. Soloway also emphasized the importance of specific price levels, stating that for the formation to be confirmed and the formation of the shoulder to be completed, the price must stay below the previous high level around $32,000. If Bitcoin surpasses this level and remains above it for seven consecutive trading days, the large bearish formation will be invalidated, and a different scenario will begin to unfold.
Soloway also warned that if the expected Inverse Head and Shoulders formation is completed and works, the potential downside target level could be around $20,000.
