Bitcoin price remained under pressure this week as trade concerns remained, but two rare patterns point to an eventual rebound.
Bitcoin (BTC) wavered, while the crypto fear and greed index slipped to the fear zone of 35 this week. Most of this weakness was because of the ongoing fear of a trade war between the United States and its top partners.
The US has already started levying tariffs on Chinese goods, which may affect trade volume worth over $450 billion. While Canadian and Mexican tariffs have been paused, there are odds that they will be restarted next month.
These trade jitters have led to a sense of fear among market participants. The crypto fear and greed index has dropped to the fear level of 35, while the CNN Money index has fallen to 39.
Bitcoin has also remained on edge as investors remain on the sidelines for now. Strategy paused its Bitcoin purchases, while CoinGlass data point to weak futures open interest. Spot Bitcoin ETF inflows have remained around $57 billion, down from this year’s high of $68 billion.
Bitcoin futures open interest | Source: CoinGlass
Bitcoin price also wavered because of the Federal Reserve, which pointed to a more hawkish tone in its first monetary policy meeting of the year. The bank left interest rates unchanged and hinted that it would deliver just two cuts this year. Bitcoin and other altcoins do well when the Fed has a dovish tilt.
Technicals point to Bitcoin price rebound
BTC price chart | Source: crypto.news
The weekly chart shows that the BTC has formed two rare chart patterns that often lead to substantial gains over time. The first one is a cup and handle that was formed between November 2021 and November last year. This pattern is made up of a horizontal line and a rounded bottom to form the cup, followed by some consolidation.
The profit target is established by measuring the depth of the cup and then measuring the same distance from the cup’s upper side. In this case, the depth is about 80%, meaning that the coin will rebound to $123,000.
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Bitcoin’s recent consolidation is part of the bullish flag pattern, which has a long vertical line and a rectangle pattern. The size of the flag pole is about 55%. Measuring that distance from the upper side points to a breakout of $166,000.
The caveat of this BTC price prediction is that it may take time since it uses the weekly chart. For example, the C&H pattern took about three years to form. As such, a Bitcoin price surge to $166,000 may take time to complete.
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