With ongoing volatility keeping Bitcoin just below its all-time high of $69,000, there are signs that the cryptocurrency may be on the cusp of a breakout. Crypto analyst Josh Olszewicz has identified an inverse head and shoulders pattern on Bitcoin’s chart, indicating a potential bullish trend ahead.
Bitcoin’s Bullish Signal: The iH&S pattern on the 1-hour Bitcoin chart presents a trading opportunity, with three troughs suggesting a bullish momentum shift. A breakout above the neckline could signal a trend reversal from bearish to bullish, with potential price targets between $73,000 and $76,000 according to Olszewicz’s analysis.
Targeting New Heights: Olszewicz’s analysis points to Fibonacci extension levels at $72,610.59 and $75,776.31 as potential targets for Bitcoin’s next rally. A volume breakout could further validate the pattern’s strength, with increased trading volume supporting the bullish outlook.
Risk Management: Olszewicz recommends a stop loss level around $65,680 to manage potential risks in cryptocurrency trading. This level serves as a safety net in case the anticipated bullish pattern fails to materialize.
As the crypto community monitors Bitcoin’s position near the critical neckline, there is anticipation for a potential upward trajectory that could push BTC to new record highs.