Bitcoin price has been the subject of much interest and speculation in the financial world, as investors eagerly watch its price movements for potential opportunities. Recently, an interesting development has caught the attention of seasoned traders and cryptocurrency enthusiasts alike.
According to Mikybull Crypto, there is a long-term chart edge which, if it continues to hold, could potentially lead to a significant rally in Bitcoin (BTC). In his latest analysis, the popular trader highlighted the encouraging signs on the BTC/USD weekly chart, which indicated the potential for a significant upside of 60% in value. This potential rally would push the bitcoin price to an impressive point of around $40,000.
The question on everyone’s mind is: will Bitcoin actually experience such a major upside, and what factors might contribute to such a rally?
Long-term chart signals a potential bullish trend for Bitcoin price
With Bitcoin still confined to a tight trading range it entered nearly three months ago, traders and investors are finding themselves in a bind when it comes to predicting short-term price targets. The daily performance of the cryptocurrency failed to establish a clear direction, leaving $30,000 as a massive resistance level hanging on.
However, a famous merchant Mikybull Crypto remains optimistic, as it identifies an interesting price action on the higher timeframes which could indicate a major move in the near future. According to his analysis, the weekly chart reveals the completion and retest of the inverse head and shoulders pattern for BTC/USD.
# Bitcoin A head-and-shoulders reverse script book flashes on TF Weekly. The price is currently retesting the neckline after the breakout.
As taught, if the range between the head and the neckline is usually a sprint, we would expect another 60% up #BTC pic.twitter.com/67KU37Tfbq
– Mikybull 🐂Crypto (MikybullCrypto) June 8, 2023
Unlike the standard head and shoulders pattern, which usually indicates solid resistance followed by a downtrend, the inverse head and shoulders pattern is a bullish counterpart. This indicates that Bitcoin may be on the verge of a positive breakout.
Source: TradingView
“Bitcoin is issuing an inverted head and shoulders text book flash on the weekly TF. Price is currently retesting the neckline after the breakout,” wrote Mikybull Crypto.
He said, “As taught, if the range between the head and the neckline is the sprint, we expect another 60% rally on Bitcoin.”
Bitcoin price is facing speculation of a $40,000 target amid predictions of a halving
With the price of bitcoin dropping to the $25,000 level Queen GekkoMarket participants continue to closely monitor the expected $40,000 mark. Such a significant price level has become a popular target for many traders and investors, as it symbolizes a possible breakout for the leading cryptocurrency.
Source: Coingecko
Adding to the rhetoric, a popular trader and analyst, Credible Crypto, recently made a prediction suggesting that Bitcoin may enter a sideways phase, ranging from Between $20,000 and $40,000for approximately 12 months after the next halving event in April 2024.
Prediction: “Bitcoin halving in April 2024. Prediction BTC dollars To go sideways between 20-40k for about 12 months, which is when we collect as much bitcoin as we can. Once the halving hits, we start the next upward race to 100k+ through 2025. WAGMI.”
Reality: BTC makes a new ATH…
– CrediBULL encryption (CredibleCrypto) June 3, 2023
Bitcoin price loses steam, drops to the $25K territory today. Chart: TradingView.com
The Bitcoin halving, which occurs approximately every four years, is a significant event in the cryptocurrency ecosystem. It is characterized by a reduction in the block rewards earned by miners, which results in a lower rate of creation of new bitcoins.
This event has historically been associated with bullish trends, as a decrease in the supply of new coins often leads to an increase in demand and thus affects the price.
Featured image from TechSpot
