Bitcoin exhibited modest gains this week, comfortably nestled within a well-established trading range. What’s especially remarkable is the cryptocurrency’s apparent departure from historical norms as it inches towards a positive conclusion for September—a month traditionally less favorable for cryptocurrencies.
That said, amid these events, seasoned market veteran Peter Brandt, shed light on a potentially bullish indicator amidst as “Uptober” nears.
Are the BTC Bulls Awaken?
In a tweet late Thursday, Brandt noted,
“Bitcoin $BTC Lowest ADX reading since July 2020. Second retest of underlying H&S bottom. Small 6-week inverted H&S is possible now. Might the bull be awoken? Thoughts?”
Bitcoin Head and shoulders | Source: Twitter
Notably, Brandt’s tweet placed several key elements under the spotlight. Firstly, he pointed out the “lowest ADX reading since July 2020,” signifying a decrease in overall market strength. Secondly the pundit raised the possibility of a “small 6-week inverted head and shoulder (H&S) pattern forming.
Notably such patterns often serve as potential indicators of imminent trend reversals, suggesting a short-term shift towards a bullish sentiment. If the H$S pattern works out, BTC’s price is poised to surge to the $30,000 range.
Other BTC Price Predictions
Meanwhile Brandt’s analysis isn’t the only one painting a positive picture for Bitcoin. Gareth Soloway, the founder of verified investing.com, also expressed optimism about BTC surging in coming weeks. In a video, Soloway mentioned the possibility of a “Head and Shoulders pattern” emerging, particularly if specific conditions, such as the approval of a Bitcoin exchange-traded fund (ETF), materialize.
However, it’s crucial to note that his wasn’t an inverted Head and Shoulders pattern, which usually implies further price drops. Soloway further stressed the importance of specific price levels stating that to validate the pattern, the “shoulder” must stay below the previous high around $32,000. If Bitcoin’s price exceeds this and holds for seven consecutive trading days, it suggests a different scenario.
The pundit went on to cautioned that if the Head and Shoulders pattern does take shape, the potential downside target could be around $20,000. That said, BTC, witnessed a 2.22 % increase over the past 24 hours, and was trading at $27,076 at press time.
