A closely watched analyst thinks Bitcoin (BTC) is creating a pattern that could reignite bullish momentum for the crypto king.
Last week, when Bitcoin was trading below $40,000, pseudonymous analyst Cheds said told his 322,600 followers on social media platform
With BTC’s latest bounce, Cheds updates its outlook, saying Bitcoin could print an inverse head-and-shoulders pattern (I-HNS), with $40,500 serving as new support or right shoulder.
“BTC see if we fall back or break through. I might be able to see I-HNS (inverted head and shoulders).
An inverse head and shoulders pattern is a technical formation with bullish implications, as the right shoulder suggests that bulls are willing to accumulate assets without waiting for the price to fall to the previous low. In the case of Bitcoin, last week’s low is 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 clear its resistance around $42,300.
At the time of writing, BTC is trading at $42,278.
The crypto strategist is also keeping a close eye on the price action of the smart contract protocol Solana (SOL). The analyst shares a chart indicating that Solana has eliminated its short-term diagonal resistance. However, the trader emphasizes that SOL must convert its next resistance into support to confirm a breakout.
“SOL update.
A $103 flip would confirm this [breakout].”
At the time of writing, SOL is worth $97.16.
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Generated image: Midjourney
