Bitcoin may have a chance to rally to $70,000 as indicated by an inverted head-and-shoulders pattern on the daily chart. This pattern often emerges after a downward trend and signifies a possible reversal in direction.
Despite recent signals pointing towards a bearish market, Bitcoin’s long-term bullish stance remains strong. Analysts are now speculating that BTC could defy expectations and surge beyond $70K in the near future.
The key driving force behind Bitcoin’s positive outlook is the formation of the inverted head-and-shoulders pattern on the daily chart. This pattern is characterized by three price troughs, with the middle one being the lowest. If Bitcoin surpasses the $65,000 mark, it could potentially lead to a substantial rise towards $70,000.
Market participants are closely monitoring economic reports, such as the Non-farm payrolls data, for potential impact on Bitcoin and other risk assets. A weaker report could support the case for Federal Reserve rate cuts, which could further bolster cryptocurrencies.
In addition, Bitcoin’s long-term bullish trend is supported by its position within a flag pattern despite recent declines. Low coin days destroyed over the past 90 days indicate investor confidence in BTC. The 90-day MVRV Ratio also suggests a positive outlook for Bitcoin, positioning it in the opportunity zone.
While market sentiment may currently lean towards bearish, technical indicators and market resilience hint at a potential bullish surprise for Bitcoin. Maintaining levels above the critical 200-day moving average and increased trading volumes could trigger a bullish breakout, pushing BTC towards a new all-time high. The recent bearish signals might not be the final chapter for Bitcoin, and an upward trend could be on the horizon.
