- Bitcoin (BTC) may rally to $70,000 based on an inverted head-and-shoulders pattern on the daily chart¹.
- The pattern forms after a downtrend and signals a trend reversal.
- Despite recent bearish signals, Bitcoin’s long-term bullish outlook remains intact.
Bitcoin might be poised for a surprising turnaround despite recent bearish signals. Technical analysts suggest that the BTC could defy the odds and rally beyond $70K in the coming days.
#Bitcoin is suffering from two bearish signal – Double Top and 10/20 SMA Death Cross ☠️
However, this combination triggered $BTC to ride HIGHER in Oct 2023 🔥
This bearish combination is so BULLISH 🚀 pic.twitter.com/eqsNuOyw1d— Trader Tardigrade (@TATrader_Alan) July 6, 2024
The key factor driving Bitcoin’s bullish outlook is an inverted head-and-shoulders pattern on the daily chart. This pattern typically forms after a downtrend and signals a potential trend reversal.
In BTC’s case, the pattern consists of three price troughs, with the middle one being the deepest. A potential leading to $70,000 could be confirmed if the price of Bitcoin surpasses $65,000.
On Friday, Investors were closely watching the release of the Non-farm payrolls report scheduled for release. Economists estimate that the economy added over 100,000 jobs in June, nearly matching May’s gains.
A weaker-than-expected report could strengthen the case for Federal Reserve rate cuts, which could further boost risk assets, including cryptocurrencies.
Additionally, Bitcoin’s long-term bullish outlook remains intact.
BTC is still within a flag pattern despite recent declines. Plus the coin days destroyed over the past 90 days have been low. This signals that investors still have confidence in BTC.
The 90-day MVRV Ratio also supports the positive outlook, positioning Bitcoin in the opportunity zone. There’s still hope for bulls although the market sentiment is bearish.
A bullish breakout could be triggered as long as Bitcoin stays above the crucial 200-day moving average and trading volumes surge.The seemingly bearish signals may not be the end of the story for Bitcoin.
The market’s resilience and technical patterns suggest that a bullish surprise could be in store. An upsurge could potentially propel the price of BTC to a new ATH.
