One closely watched analyst believes Bitcoin (BTC) may be on the way to creating a pattern that could reignite the cryptocurrency king’s bullish momentum.
Last week, when Bitcoin was trading below $40,000, anonymous analyst Cheds said: said The 322,600 followers on social media platform
With BTC’s recent bounce, Cheds updated his outlook, saying Bitcoin could print an inverse head and shoulders pattern (I-HNS) with $40,500 acting as a new support level or right shoulder.
“BTC Find out if we are in retreat or a breakthrough. You’ll probably see I-HNS (inverted head and shoulders).”
The inverted head and shoulders pattern is a technical pattern that suggests bullishness. This is because the right shoulder suggests that bulls are willing to accumulate assets without waiting for prices to fall to previous lows. For Bitcoin, the lowest price last week was around $38,600.
Looking at the trader’s chart, it seems like he predicted that Bitcoin would break out of the pattern once BTC clears resistance near $42,300.
As of this writing, BTC is trading at $42,278.
Cryptocurrency strategists are also closely watching the price movement of smart contract protocol Solana (SOL). The analyst shares a chart that suggests Solana has cleared short-term diagonal resistance. However, traders emphasize that SOL needs to turn the next resistance into support to confirm a breakout.
“SOL update.
If you flip $103, it will be confirmed (breakout).”
As of this writing, SOL is worth $97.16.
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