Amid the swirling volatility that has kept Bitcoin prices just shy of its $69,000 all-time high, the cryptocurrency’s price actions hint at an impending departure from its current $67,000 hover. Crypto analyst Josh Olszewicz has spotted an intriguing pattern on Bitcoin’s chart that may signal a bullish breakthrough. The emergence of an inverse head and shoulders (iH&S) pattern, typically a bullish reversal indicator, suggests Bitcoin could be gearing up for a substantial price ascent.
Bitcoin’s Bullish Signal: This iH&S pattern, identified on the 1-hour Bitcoin chart, although not flawless, presents a tradeable opportunity, according to Olszewicz. This pattern features three troughs, with the center trough (the head) dipping the lowest, flanked by two shallower troughs (the shoulders), all suggesting an upcoming bullish momentum. This configuration hints at potential reversal points from bearish to bullish trends, with the neckline breakout serving as a critical entry signal for traders.
Targeting New Heights: Olszewicz’s analysis points towards a bullish target range between $73,000 and $76,000, aligning with Fibonacci extension levels at 1.618 ($72,610.59) and 2 ($75,776.31). Such targets are pivotal for Bitcoin’s next potential rally, dependent on a decisive neckline breakout to confirm the pattern. The anticipation of a volume breakout further supports this bullish outlook, with increased trading volume often validating the iH&S pattern’s predictive strength.
Risk Management: For those looking to navigate this setup, Olszewicz suggests a stop loss (SL) level around $65,680, providing a safety net against the volatility inherent in cryptocurrency trading. This SL level acts as a strategic point to mitigate risks should the anticipated bullish pattern falter.
As the crypto community watches closely, Bitcoin’s current trading position just below the critical neckline offers a suspenseful prelude to what many hope will be a robust upward trajectory, potentially propelling BTC to new record heights.
