The Bitcoin price chart in recent days points to a development that is causing excitement among market analysts. The inverse head and shoulders pattern highlighted by market analyst Jake Wujastyk on the daily candle chart reveals a potential uptrend. putting.
The reversal head and shoulders pattern is a classic technical analysis pattern that consists of three main parts on the price chart: the head, shoulders and neckline. While Jake Wujastyk states that this formation is formed on the daily candle chart, he emphasizes this situation, especially when the price closes above a significant volume shelf.
#Bitcoin Inverse head & shoulders on the daily candle chart as price closed above the volume shelf today. $BTCUSD #Crypto pic.twitter.com/zE1lDJGnAM
— Jake Wujastyk (@Jake__Wujastyk) February 2, 2024
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Completion of the formation occurs when the price exceeds the “neckline” that forms the resistance level. In this case, the said resistance level falls on the volume shelf. Volume shelves, on the other hand, are chart areas where trading volume is concentrated at a certain price level or range of price levels. They are called “shelves” because the visual representation of the volume in these areas creates a shelf-like appearance.
A close above this critical level of around $43,000 indicates that buyers have taken control and could push the Bitcoin price higher in the near term.
Massive Bitcoin options expiry
In addition, as the 22,000 BTC options approach maturity, the balance of power and price caution in the market become an important focus. Current Bitcoin price performance reflects a cautious attitude along with a certain optimism. In particular, the Maxpain point at $42,000 marks a critical point at which options will become worthless, while this level also has a potential support function.
The total notional value of the options stands out with a significant figure of 960 million dollars, which shows that the sensitivity in the market is high. The fact that a large fund of investors is tied to these options means that the impact of possible fluctuations in the market can be wide.
On the other hand, the cryptocurrency market is currently following a relatively horizontal trend. Despite the quiet market, Bitcoin spot exchange-traded funds (ETFs) are slowly attracting increasing capital flows, a bullish indicator for the cryptocurrency.
You can follow the current price movement here.