A closely followed analyst thinks that Bitcoin (BTC) may be in the process of creating a pattern that could reignite bullish momentum for the crypto king.
Last week when Bitcoin was trading below $40,000, pseudonymous analyst Cheds told his 322,600 followers on the social media platform X that BTC would flash a bullish signal if it moved above $40,500.
With BTC’s latest bounce, Cheds updates his outlook, saying that Bitcoin could be printing an inverse head and shoulders pattern (I-HNS) with $40,500 serving as the new support or the right shoulder.
“BTC see if we throwback or breakthrough. Could see I-HNS (inverse head and shoulders) perhaps.”
An inverse head and shoulders pattern is a technical formation with bullish implications as the right shoulder suggests that bulls are willing to accumulate the asset without waiting for the price to drop to its previous low. In Bitcoin’s case, the last week’s low stands at around $38,600.
Looking at the trader’s chart, he seems to predict that Bitcoin would break out of the pattern if BTC manages to take out its resistance around $42,300.
At time of writing, BTC is trading at $42,278.
The crypto strategist is also keeping a close watch on the price action of the smart contract protocol Solana (SOL). The analyst shares a chart suggesting Solana has taken out its short-term diagonal resistance. However, the trader highlights that SOL must convert its next resistance into support to confirm a breakout.
“SOL update.
$103 flip would confirm [breakout].”
At time of writing, SOL is worth $97.16.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Bitcoin Could Form a Bullish Reversal Pattern After BTC’s Recapture of $40,500, According to Crypto Analyst appeared first on The Daily Hodl.
