A prominent crypto analyst has observed a potentially bullish pattern forming in Bitcoin (BTC), sparking hope for a resurgence in the cryptocurrency’s bullish momentum.
Last week, the analyst, known as Cheds, informed his substantial following on X that Bitcoin had the potential to signal a bullish trend if it surpassed the $40,500 mark while trading below $40,000.
In light of Bitcoin’s recent rebound, Cheds has updated his analysis, suggesting that the cryptocurrency may be forming an inverse head and shoulders pattern, with the $40,500 level serving as a new support or the right shoulder. This pattern could indicate a shift in sentiment towards bullishness, signifying that buyers are accumulating the asset without waiting for the price to drop to its previous low.
The analyst’s chart indicates that Bitcoin could experience a breakout if it manages to surpass the $42,300 resistance level. As of the latest update, Bitcoin is trading at $42,278.
In addition to monitoring Bitcoin, the crypto strategist is closely watching the price action of Solana (SOL), a smart contract protocol. The analyst has shared a chart showing that SOL has breached its short-term diagonal resistance, but emphasizes the need for the cryptocurrency to turn its next resistance into support to confirm a breakout.
At the time of analysis, SOL is valued at $97.16. The analyst also included an image generated by Midjourney for reference.
These insights from a respected analyst provide valuable information for traders and investors in the crypto and NFT field, shedding light on potential price movements and patterns in the crypto industry.
