Bitcoin (BTC) Faces Potential Pullback, Eyes Mid-to-Upper $50s Retreat

News

Bitcoin Price is Only 2% to Its ATH of $69,000. Why is BTC Rallying?

Bitcoin has completed a Head and Shoulders (H&S) top formation on the Factor Real Range Chart, a technical analysis tool that excludes wicks from its data points to provide a clearer view of market trends. 

The uniqueness of this charting methodology is in the elimination of the price wicks, which some say brings more clarity by concentrating on the opening and closing prices only. The current trends indicate a possible pullback in Bitcoin’s price, with rumors hinting at a check of the mid to upper $50s. This retracement is assumed to be a standard phase of the overall upward Bitcoin trend.

Analyzing the Bitcoin Factor Real Range Chart

The Factor Real Range Chart’s exclusion of wicks aims to minimize noise in price data, offering a distilled view of market sentiment and trends. The formation of H&S tops on this chart has historically been a signal for a possible reversal. 

Nevertheless, not all H&S patterns result in the anticipated bearish effects. A great number of them either do not develop or transform into a different shape, which highlights that cryptocurrency markets are very unpredictable.

For Bitcoin, the current structure has given the analysts many thoughts which include but not limited to the pull-back to mid-to-upper $50,000s. Such a correction would not only test the upper boundary of the rising channel that has been established from the end of February but also will be a significant test for the strength of the current uptrend.

Role of Corrections in Bull Markets

Corrections within a major bull market are considered constructive consolidations; where the market takes a break before it continues moving upward. For Bitcoin, a drift to the mid to high $50,000s would achieve this, and the market strength and investor sentiment could then be reassessed.

Similarly, the lack of the H&S pattern, i.e., if Bitcoin reclaims the $69,000 figure, would confirm the powerful bullish view, showing strong market resistance to any bearish shapes. This template draws out the complex interplay between technical patterns and market psychology in determining price action.

For investors, discerning the subtle consequences of technical formations such as the H&S top in the context of market trends is of great importance. Although such patterns offer helpful information, they are not completely predictive. Failure of patterns or their transformation into other forms implies the necessity of a well-considered and balanced approach in market analysis.

For Bitcoin, the present technical developments and in general the bull trend of cryptocurrency encourage a cautious but optimistic attitude. As such, investors are warned of the underlying risks of the cryptocurrency market and are, therefore, trading at their own risk.

Read Also: Cardano Price Correction to Extend 7% this Week, But There Is a Catch

The post Bitcoin (BTC) Faces Potential Pullback, Eyes Mid-to-Upper $50s Retreat appeared first on CoinGape.

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed

Leave a Reply