The price of Bitcoin has captivated the financial world, attracting the attention of investors and enthusiasts alike. In an interesting development, well-known trader Mikybull Crypto has identified a long-term chart feature that could result in significant upside for Bitcoin. This analysis highlights encouraging signs on the weekly chart of BTC/USD, suggesting a tremendous 60% jump in value, potentially pushing the price to around $40,000.
Bitcoin’s recent price movement has left traders and investors unsure about its near-term targets, as the cryptocurrency remains stuck in the narrow trading range it entered nearly three months ago. The lack of a clear trend has set $30,000 as a formidable resistance level, causing doubts in the market.
However, Mikybull Crypto, an influential trader, remains optimistic. His analysis uncovers interesting price action on the higher time frames which could signal significant moves in the near term. The weekly chart reveals the completion and subsequent retest of the inverted head-and-shoulders pattern for BTC/USD.
While the standard head-and-shoulders pattern usually indicates strong resistance followed by a downward trend, the inverse head-and-shoulders pattern serves as a bullish counterpart. This suggests that Bitcoin may be on the verge of a positive breakout, as Mikybull Crypto explains in his analysis.
According to observations by Mikybull Crypto, Bitcoin displays a textbook inverted head and shoulders pattern on the weekly timeframe. The price is in the process of retesting the neckline after the initial break. By applying this pattern principle, Mikybull Crypto anticipates another 60% rally for BTC, amplifying the potential for a significant price spike.
As Bitcoin temporarily dipped to $25,000 on CoinGecko, market participants remained fixated on hitting the much-anticipated $40,000. This level has become a popular target among traders and investors, representing a potential breakthrough for the leading cryptocurrency.
Adding to the discussion, Credible Crypto analysts point out that Bitcoin could enter a sideways phase between $20,000 and $40,000 for approximately 12 months after the upcoming halving event in April 2024. This prediction is in line with historical trends, as Bitcoin halving occurs roughly every four years, traditionally leads to bull market conditions. Reducing the block reward reduces the rate at which new Bitcoins are generated, creating scarcity and increasing demand, thereby affecting the price.
The price of Bitcoin continues to generate excitement and speculation. Analysis conducted by Mikybull Crypto reveals promising signs of a potential price spike, with a 60% chance of a rally towards $40,000. With the upcoming halving event, the future of Bitcoin seems to have great potential for investors and traders.