According to a crypto expert, if the popular trading formation known as the inverse head and shoulders pattern is confirmed, Bitcoin‘s price could reverse its downward trend and move upwards. Crypto analyst Matthew Hyland, in a post published on X on May 4th, said that if Bitcoin cannot directly surpass $67,500, it could make sense for such a reversal to occur next month.
What’s Happening on the Bitcoin Front?
The inverse head and shoulders formation, an indicator of a bullish trend showing that buyers are becoming more dominant in the market, was mentioned in the post, and the famous analyst explained that this formation model is great for the next rise. Crypto analyst and CMCC Crest co-founder Willy Woo, in a statement to his 1.1 million followers on X on May 3rd, said that it is important for Bitcoin to maintain a price above the short-term holding price of $59,500 to continue its upward trend.
The formation occurs when Bitcoin’s price creates three troughs below the resistance known as the neckline, with the middle trough (also known as the head) being deeper than the left and right shoulders.
Bitcoin’s price slightly recovered from $58,614 on May 1st, and if this trend continues as Hyland’s model suggests, it will find support at an important support level around the second shoulder at $60,000. According to CoinMarketCap data, the decline represents 5% of the current price of $63,350. According to CoinGlass data, this level of decline will lead to the liquidation of $530 million in long positions in the futures market.
Notable Statements for Bitcoin
According to Hyland’s model, Bitcoin could rise above the neckline by June and surpass its all-time high of $73,800. Moreover, according to the Fear and Greed Index, buyers’ interest in the crypto market is gradually increasing. The index currently stands at a greed score of 69; this is a significant improvement from three days ago when it showed fear at 43 points.
Meanwhile, some analysts expect Bitcoin’s price to remain stable in the near term but do not necessarily see this as negative. Prominent crypto investor Titan made notable statements on the matter:
“The longer the Bitcoin consolidation lasts, the higher the price will reach the trend line.”
Crypto analyst Daan Crypto Traders, in a post on X on May 4th, told his followers:
“Previous cycles’ all-time highs tend to slow down the price and cause Bitcoin to pause for several weeks.”
