Bitcoin’s Potential Rally: New Patterns Spark Analyst Interest
A notable market observer recently shared insights on the potential trajectory of Bitcoin (BTC), hinting at a shift that could rejuvenate positive momentum for the leading cryptocurrency.
During the previous week when Bitcoin was below the $40,000 mark, an analyst known as Cheds said that BTC might display a bullish signal upon surpassing the $40,500 threshold.
In light of Bitcoin’s recent upward movement, Cheds has reevaluated his perspective, suggesting the emergence of what could be an inverse head and shoulders pattern (I-HNS). According to this analysis, $40,500 has now taken on the role of either a new support level or the formation of the right shoulder.
$BTC see if we throwback or breakthrough. Could see I-HNS perhaps pic.twitter.com/stNl12VNqO
— Cheds (Trading Quotes) (@BigCheds) January 26, 2024
The inverse head and shoulders pattern is a technical formation that carries positive implications. In this context, it implies that buyers are showing eagerness to accumulate the asset without waiting for its price to revisit the previous low. For Bitcoin, last week’s low hovered around $38,600.
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Taking a closer look at the trader’s chart, it suggests a potential breakout for Bitcoin if it manages to surpass the resistance level at approximately $42,300. As of the latest update, BTC is currently being traded at $42,278.
Additionally, the analyst is closely monitoring the price movements of Solana (SOL), a smart contract protocol. The provided chart indicates that Solana has successfully breached its short-term diagonal resistance.
$SOL update
$103 flip would confirm break https://t.co/EESmRBLi8v pic.twitter.com/oAwQ5oJ1IB
— Cheds (Trading Quotes) (@BigCheds) January 28, 2024
However, the analyst underscores the importance of SOL converting its next resistance into support to confirm the breakout, stating, “SOL update. Confirmation hinges on a successful flip at $103.”
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
