As a result of the rapid price increase, the general form of the market may change. When we take a look at the daily chart of Bitcoin (BTC), we see that an extremely unusual technical formation has developed that could indicate a general reversal of the market. At the end of a bearish rally, it is possible to see “reverse head and shoulders”. Bloomberg analysts think that Bitcoin can reach higher levels with this move.
Can Bitcoin (BTC)’s formation change the course of the market?
According to research by Bloomberg, Bitcoin’s formation could indicate the potential path to new local highs. According to estimates, Bitcoin’s theoretical target is $53,000. This scenario will happen if the leader crypto manages to break the neckline resistance level. The 18% price increase is a risky move for Bitcoin, which has been in correction mode for the past 100 days. With such a large increase, the price increase of the current return would be about 53%.
A full reversal and $53.000 exit from the decline is considered, while even if Bitcoin reaches this level, the ATH level will still be traded 20% below $69.000.
Any chance of breaking the neckline?
While there is no way to know for sure if Bitcoin will break above the resistance line mentioned above, we can use indicators like RSI and volume to compare technical data. Investors are in no rush to return their cash to the market based on open interest, so trading volumes are still lower than before, which is not a positive indicator for the crypto market, according to analysts. In terms of the relative strength index (RSI), the values of the indicators are currently in neutral territory, indicating that the market has the potential to expand.
Is $200k target possible?
In a recent CNBC Crypto World interview, Fundstrat analyst Tom Lee shared his expectations for $200,000 in Bitcoin. One of the arguments Lee put forward includes that leading crypto is “much easier” to manage and move. Lee also described Bitcoin’s high price as a barrier to adoption. According to the analyst, it may be useful for the market to give the BTC price in Satoshi (stats). You can find the details of Tom Lee analysis, which we have transferred as Kriptokoin.com, here.
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