Author: Zoltan Vardai Source: cointelegraph Translation: Shan Ouba, Golden Finance
A popular Bitcoin chart suggests that the price of Bitcoin could break out of its current range. However, this week's macroeconomic news could also have a significant impact on prices. Can Bitcoin break out to the upside?
On the four-hour chart, the price of Bitcoin presents an inverse head and shoulders pattern, which technical analysts use to predict a reversal of a previous downtrend.
Based on technical patterns, Bitcoin could rebound higher if it breaks through the trendline, according to a May 13 article by cryptocurrency investor Quinten Francois, who wrote:
“Spotted an inverse head and shoulders pattern on the Bitcoin chart. It’s not the prettiest pattern I’ve ever seen, but I’ll take it. There are multiple ways to draw the neckline, but this one makes the most sense to me. Break through the neckline and prices will recover further!”
On the daily chart, Bitcoin’s relative strength index (RSI) has risen to 49 from 33 on May 1, indicating that BTC prices are currently at fair value. The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
According to a chart shared with his 74,200 followers on May 13, in line with previous predictions, anonymous cryptocurrency trader Mags also expects a price breakout based on key technical indicators:
Despite bullish chart formations, sentiment around Bitcoin remains in a state of flux. Matt Bell, CEO of Turbofish, said that this week’s macroeconomic developments, especially the Consumer Price Index (CPI) on May 14, could have a significant impact on its short-term price trajectory.
While the 4-hour chart hints at a potential trend reversal with an inverse head and shoulders pattern, it’s important to note that Bitcoin’s price action is strictly confined to a narrow trading range…Factors such as U.S. macro data and insights from Jerome Powell, the Fed Chairman, could bring a new wave of volatility to the cryptocurrency market.
Popular cryptocurrency analyst Rekt Capital wrote in a May 13 article that Bitcoin’s retracement to $56,000 could mark a local price bottom:If $56,000 is not the bottom, then the current pullback would officially equal the longest retracement of this cycle (63 days). However, history shows that the current pullback ends at $56,000 and 47 days.
More importantly, Bitcoin's issuance danger zone ended on May 6 as it rose to the $65,000 mark.
However, Bitcoin faces significant resistance around $63,500 and $63,700. According to Coinglass, a price breakout above $63,700 would liquidate more than $516 million worth of accumulated leveraged short positions.
May 22 is "Bitcoin Pizza Day," commemorating the historic event in 2010 when 10,000 bitcoins were used to purchase two Papa John's pizzas. From $41 worth of pizza to $700 million in wealth, Bitcoin's price surge over the past 15 years has proven it to be the best-performing financial asset in history.
MiyukiKeep this in mind when turmoil intensifies and the narrative of Bitcoin as a currency begins to form.
JinseFinanceBitcoin is an ultra-secure asset. As an ultra-safe asset, Bitcoin’s supply curve is closer to the inelastic level (S0) than every other known commodity and monetary good!
JinseFinanceBitcoin's price has been soaring since its launch in 2008. Early investors are now reaping returns in the millions of dollars. Nevertheless, its volatility and regulatory uncertainty remain significant risks for investors.
BerniceBitcoin surpassed $56,000 for the first time since November 2021, influencing the broader crypto market and stock market, with optimism for its future trajectory and notable shifts in political perspectives.
WeiliangMATIC, the native cryptocurrency of Polygon, has recently gained traction, showing a 50% increase in price surge in the last 20 days, amid the optimistic trend circling the cryptocurrency market due to the recently finished Uptober rally.
BitcoinworldBitcoinworldOne filing also alleged that Bahamian regulators asked Sam Bankman-Fried to gain unauthorized access to funds.
BeincryptoThe Crema Finance team awarded the hacker who made off with nearly $10 million in funds from the protocol 16.7% of the stolen funds as a white hat bounty.
CointelegraphThe U.S. dollar currency index breaks through resistance to hit its highest level since 2002 — to the detriment of practically everything.
Cointelegraph