What is the Inverse Head & Shoulders Pattern on Bitcoin? Identified Increase to $76,000

Bittime - Bitcoin (BTC) is currently at an all-time high of $69,000. The price has shown morevolatilityin the last few days, but now there are fluctuations and corrections in the price so it is down and is around $67,000.

Following recent price movements, an important pattern has emerged on the Bitcoin (BTC) price chart, as recognized by experienced crypto analyst Josh Olszewicz, calling the Inverse Head & Shoulders Pattern.

What is the Inverse Head & Shoulders Pattern?

The IHS pattern is a bullish reversal pattern that is often used in technical analysis to predict trend changes from bearish to bullish.

This pattern is formed with three peaks and two troughs, where the middle peak (head) is higher than the other two peaks (shoulders). The neckline connects the two troughs on either side of the pattern.

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Characteristics of IHS Patterns

• Three Peaks: The first peak (left) formed in November 2021 at around $68,000. The second peak (head) formed in January 2022 at around $84,000. The third peak (right) formed in March 2022 at around $72,000.
• Two Troughs: The first trough formed in December 2021 at around $42,000. The second trough formed in February 2022 at around $34,000.
• Neckline: The neckline connects from the first trough to the second, resulting in a horizontal line at around $47,000.
• Volume: Trading volume increased significantly in April 2022 when BTC broke the neckline at around $47,000.

Price Targets

The price target for the IHS BTC pattern is $76,000. This is calculated by adding the height of the middle peak ($14,000) to the breakout point ($62,000).

Bullish Confirmation

It is important to consider other bullish confirmations before assuming that the IHS pattern will be fulfilled. Some bullish confirmations that can be observed:

• Increased Trading Volume: Increased trading volume when price breaks the neckline indicates strong buying interest.
• Positive Technical Indicators: Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) can provide additional bullish signals.
• Positive Fundamental News: Positive fundamental news about Bitcoin, such as wider adoption or new technological developments, can strengthen bullish momentum.

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Two Inverse Head & Shoulders Patterns

• Inverted IHS Pattern vs Head and Shoulders Pattern: The inverted IHS pattern is the opposite of the Head and Shoulders pattern. The Head and Shoulders pattern signals a trend reversal from bullish to bearish.
• IHS Pattern Risk: The IHS pattern is not always met. Factors such as market conditions and fundamental news can influence price movements.

Bitcoin Price Rises To $76,000?

The inverse head & shoulders (iH&S) pattern, often considered a bullish indicator and has formed on Bitcoin's 1-hour chart, indicates a potential upward price movement.

While admittedly imperfect according to Olszewicz, this pattern is considered tradable in his view.

"The pattern is not perfect but it can still be traded," said Olszewich, quoted by newsbtc.

One element that could strengthen the upside potential is a volume breakout, which analysts have hinted at with a question mark.

Volume indicators usually show an upward trend, but decisive volume spikes are usually sought to confirm the iH&S pattern.

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Conclusion

The IHS pattern is a useful tool for predicting changes in BTC price trends. However, it is important to consider other factors such as market conditions, fundamental news, and technical indicators before making an investment decision.

Always remember that technical analysis cannot predict the future with certainty, and you should always use good risk management strategies.

How to Buy Bitcoin (BTC) on Bittime

You can buy and sell  Bitcoin (BTC)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Bitcoin (BTC)  is available on Bittime with  the market pair BTC/IDR . To be able to buy  BTC IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  the complete guide on how to buy Bitcoin (BTC) on Bittime . 

Monitor price  chart movements  for Bitcoin (BTC ) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also read:

Tesla and SpaceX Own $1.3 Billion in Bitcoin, Will BTC Prices Continue to Rise?

BlackRock Buys Spot Bitcoin ETF for Its Global Allocation Fund: What Does It Mean?

Bitcoin (BTC) Price Predicted to Hit $70,000? Here's the analysis of the increase

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.