Bitcoin Could be on the Verge of a Breakout – Here’s Why
Experienced trader Peter Brandt looks at a Bitcoin market structure that is similar to gold’s historical bull phases, suggesting the cryptocurrency could be on the verge of a serious
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Will the current Bitcoin chart become a daily chart fractal of ….
Gold 2008-2009
Gold 2020-2024 pic.twitter.com/8kanoBzBk4— Peter Brandt (@PeterLBrandt) June 18, 2024
In his view, the “head and shoulders” pattern of the Bitcoin price chart is similar to bull markets in gold such as with the SPDR Gold Trust (GLD).
According to Brandt, this could be the start of a major move higher. Comparing Bitcoin’s moves to those of gold historically shows a reverse head-and-shoulders pattern in gold from 2020 to 2023, which usually suggests a bullish reversal. Judging by indicators such as the ADX and moving averages, potential price increases can be suggested.
Bitcoin’s chart also shows an inverse head and shoulders pattern with support coinciding with the 100-day exponential moving average (EMA) of $55,000 – $60,000. The Relative Strength Index (RSI) shows a score of 50.71, indicating a neutral market.
One of the most important things is market sentiment. Analysts are pointing to strong buying power and patterns indicating that the current cycle could end with a breakout and an outright rally. Bitcoin recently reached its 128-day moving average, a key level during bull markets.
Onchain data supports this bullish outlook, with crypto whales having moved 20,000 BTC.
What’s more, the Bitcoin price is currently oscillating between support and resistance levels. However, there is uncertainty as to whether Bitcoin will stay below $65,000 or head towards the $67,000 level in the coming weeks.
Although Bitcoin has fallen below $65,000 amid outflows from the US spot BTC ETF and hawkish comments made by Federal Reserve officials, the significant accumulation along with encouraging on-chain data points to a potential upside. MicroStrategy, Michael Saylor’s company, plans to raise $700 million in an attempt to purchase more BTC, which could potentially boost the price of the cryptocurrency in the future.
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