Bitcoin is still wallowing in a bit of a stagnant slump since it made its all-time high back in mid-March. That said, there are 3 chart patterns building that could indicate much higher prices.
Bitcoin is still looking like a highly tranquilised asset as it moves into its 15th week of sideways and slightly down price action. The thesis that Bitcoin actually reached the top of its current bull market back in March, and that it has been slowly rolling over ever since, is starting to gather more adherents across social media.
Nevertheless, Bitcoin is still in a bull trend and this has not broken. Corrections in previous bull markets have been a lot more severe than this current one, and Bitcoin is only just over 11% from its all-time high. There doesn’t seem to be too much to worry about.
In addition to this, there are some chart patterns that are being built out as Bitcoin meanders ever-sideways, and should one or two of them play out, we are in for the next very exciting phase of price action for Bitcoin.
Inverse head and shoulders
Source: TradingView
Giving the least potential gains of the three chart patterns, this inverse head and shoulders may not even play out. The price is right at the neckline of the pattern, and should a daily candle body close below, this pattern would be invalidated. That said, the pattern is still alive, and if Bitcoin does bounce from here and the pattern reaches its measured target, the Bitcoin price would make a new all-time high at over $75,000.
Bull flag
Source: TradingView
A bull flag is one of the most bullish patterns, especially if it is on a high time frame. With this particular pattern, if the bottom of the flagpole is measured from the $38,500 price of January this year, the measured move takes the $BTC price to just over $94,000.
Cup and handle
Source: TradingView
The most bullish chart pattern of them all for Bitcoin’s current setup is a cup and handle. This is a giant pattern. The cup is formed from the top of the previous bull market in 2021, the ensuing year-long bear market from 2022 to 2023, and then the entirety of this current bull market up to the all-time high in March. Since then the price has been forming the handle, which may still see some more sideways price action.
Once/if the price is able to confirm above $71,500, the pattern could then start on its move upward. The measured move for this pattern, taken from the bottom of the cup to the top neckline would take the $BTC price to around $126,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
