This Chart Pattern Suggests Bitcoin Is on the Verge of a Macro Bull Trend

• Bitcoin has undergone a strong drop since posting a number of highs near $12,000 in August.
• The coin now trades at $10,700 as of this article’s writing, nearly $2,000 before the year-to-date high.
• Analysts are still optimistic about BTC’s long-term price prospects.
• One trader shared a chart indicating that Bitcoin is likely on the verge of its next phase of growth.
• The chart shows that BTC recently broke out of a macro inverse head and shoulders pattern.
• This pattern, which has formed over the course of the past year, predicts that Bitcoin has room to extend to the upside.
• The implication of this pattern has been corroborated by fundamental factors, which also show that Bitcoin has room to rally.

Bitcoin Could Be on the Verge of a Macro Bull Trend: Pattern

Although Bitcoin’s recent price action has suggested that the cryptocurrency is on thin ice, the cryptocurrency’s long-term trend remains positive.

One crypto trader shared the chart below on September 14th. It shows that despite BTC’s recent $2,000 correction, the coin remains in the breakout phase of an inverse head and shoulders pattern. A head and shoulders is a textbook bearish pattern while the inverse of that is often seen prior to price rallies.

This simple analysis suggests that as long as Bitcoin holds the “neckline” of the inverse head and shoulders at around $10,000, it could push to $15,000 and beyond.

The $15,000 target is obtained by taking the height of the “head” in the pattern and extrapolating it to the upside.

Chart of BTC's price action over the past few years with analysis by crypto trader CryptoShelby (@CryptoNewton on Twitter). Chart from TradingView.com

Fundamentals Corroborate Upside Expectations

There are fundamentals that corroborate the sentiment that Bitcoin is at the start of a longer-term bull trend.

Dan Tapiero of DTAP Capital, Gold Bullion, and other firms recently noted that Bitcoin is likely to be boosted by ongoing monetary stimulus spurred by the ongoing commercial real estate crisis: 

“An entire asset class redefined almost overnight by covid/#WFH. Total value of all US #commercialrealestate is $16 trillion. Now entering largest bear mkt since late 80s? 50% price drop wipes out $8 tril. Major econ drag/knock on effects huge. Rates stay 0%, +#GOLD and #BTC.”

Raoul Pal, one of the Tapiero’s peers has said that Bitcoin’s ability to outperform the aggregate G4 central bank balance sheet bodes well for its long-term trends:

“My conviction levels in Bitcoin rise every day. I’m already irresponsibly long. I am now thinking it may not be even worth owning any other asset as a long-term asset allocation, but that’s a story for another day.”

Pal thinks that Bitcoin rises to a value in excess of $100,000 this market cycle.

Featured image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
This Chart Pattern Suggests Bitcoin Is on the Verge of a Macro Bull Trend

Originally from Bitcoinist.com https://ift.tt/3iwli5m