Bitcoin (BTC) may be in line for a 60% increase if a long-term chart feature remains intact.
In part of his last analysis On June 8, popular Crypto trader Mikybull noted encouraging signs on the BTC/USD weekly chart.
Bitcoin weekly price chart keeps $40,000 on the table
With Bitcoin still wedged in a tight trading range that it entered almost three months ago, market participants have little to go on when it comes to near-term price targets.
Daily performance has offered no decisive uptrend or downtrend, and $30,000 remains formidable resistance overhead.
“The market is still in the same position it has been in the last few days. Don’t be shy, place some offers on the ends and wait.” He suggested trader Jelle in a tip now typical of the current market outlook.
“Stay focused on the direction of the higher time frame.”
However, for Mikybull Crypto, those higher time frames point to much more interesting price action just around the corner.
The weekly chart, he argued, shows BTC/USD completing and now retesting an inverse head and shoulders pattern.
This is the bullish counterpart to the standard head and shoulders pattern, showing that resistance is consolidating and is usually followed by a downtrend.
While the daily time frames have seen a bearish head and shoulders pattern materialize around the local highs of $31,000 in April, the broader trend may still play to the bulls.
“Bitcoin is showing a textbook reverse head and shoulders in the weekly TF. Price is currently retesting cleavage post-breakout,” Mikybull Crypto explained.
“As taught, if the range between head and neck is usually the sprint, we are anticipating another 60% rally in BTC.”
That 60% sprint would put BTC/USD at around $40,000.
Let go of limited “expectations”
The $40,000 mark and the area around it are indeed a popular target for a number of traders.
Crypto Kaleo has continued to describe $40,000 as a “magnet” for the market, while Bitcoin price has held onto key support trend lines throughout the three-month range.
Meanwhile, in a prediction this week, trader and analyst Credible Crypto said that $40,000 would not form the ceiling for BTC in 2023.
“Expectations: ‘Bitcoin halving is in April 2024. Expect BTC to go sideways between 20,000-40,000 for about 12 months, which is when we accumulate as much Bitcoin as possible. Once the halving hits, we begin our next bull run to over 100,000 in 2025. WAGMI’”, said to his followers.
“Reality: BTC makes a new ATH in 2023 leaving out the majority. Not everyone makes it.”
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