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A trader and crypto analyst Gert Van Lagen shared his thoughts on Bitcoin price action in a tweet. He told his followers that the head-and-shoulders bottom formation is a bullish signal.
Bitcoin Displays Head And Shoulder Bottom – Crypto Analyst
In a tweet, Van Lagen noted the formation of a perfect head-and-shoulders-bottom below the weekly Simple Moving Average (SMA). This chart pattern identifies as a bullish signal for trading and often ushers in an uptrend for an asset. Van Langen’s tweet noted the double retest of the neckline/SMA200, hinting at a strong potential for an upswing.
Also, he identified a perfect bear trap which he believes is now completed. It implies that traders hoping to buy the dip could be on the wrong side of an incoming rally.
This wrong trading position is called a bear trap leading to losses for traders in such a position.
Van Langen wrapped up his BTC price analysis by predicting a blow-off top representing a strong price surge.
According to the analyst, wave 1 is impulse, wave 2 correction, sharp zigzag, wave 3 impulse and momentum, wave 4 correction and expanded flat, and wave 5 impulse and blow off.
The target price for wave 5 is $170,000 to $200,000, marking a major bull run for the asset, according to his forecast.
JP Morgan is Also Bullish On BTC
Banking Giant JP Morgan also echoes Van Langen’s bullish sentiments on Bitcoin. According to the firm’s strategists, led by Nikolaos Panigirtzoglou, Bitcoin, has the potential to attain $45,000.
The strategists believe that since gold’s price currently exceeds the $2000 price level, Bitcoin’s positive forecast is possible.
Bitcoin, as the pioneer cryptocurrency, enjoys adoption from investors and institutions. However, gold remains the preferred standard for some countries and institutions as a store of value.
BTC Prices Moves In May
Bitcoin is currently showing price volatility as it attempts to recover from its recent price slump. However, its trading volume is down by over 10% today.
The apex cryptocurrency has struggled to reclaim its former price levels after a decline from $28,441 to $27,310 on May 8, 2023.
BTC dropped to $26,883 on May 10 as the bears continued to exert pressure on its price. The bearish pressure forced it to $25,878 on May 12 before it reclaimed the $26,000 price level on May 13.
Bitcoin remained at the $26,000 price level, with highs and lows recorded. However, a further decline to $25,890 ensued on May 25. Today May 27, BTC is trading at the $26,700 price level as the bulls attempt a rally again.
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