Bitcoin traders are optimistic about a potential reversal in the recent downtrend, pointing to a bullish candle hammer formation on Bitcoin’s weekly price chart.
The founders of renowned market intelligence firm Glassnode, Jan Happel and Yana Allemann, also known as “Negentropic,” have expressed their bullish sentiment, stating, “Bitcoin still looks like it is about to BLOW higher.” Their expertise and track record in the industry lend weight to their optimistic outlook.
They drew attention to the bullish hammer candle on Bitcoin’s price chart, a formation that has historically signalled a shift in sentiment among traders. This candle indicates a potential reversal in Bitcoin’s recent downtrend.
They stated,
“#BTC still looks like it is about to BLOW higher! Last week’s candle was a Reversal Candle—a Hammer with a long Wick. This means that the price moved back into the Penny Structure, a pattern often associated with bullish trends.”
This candle still dominates the structure. This week’s pullback, therefore, seems like a healthy correction before a rally. Corrections often pull back 50% or 61.8% of the previous Impulse move.
Pseudonymous crypto trader Mister Crypto echoed this sentiment, suggesting that the recent pullback in Bitcoin’s price is a healthy correction before a potential move higher. They noted that corrections often pull back 50% or 61.8% of the previous impulse move, indicating a possible rebound in Bitcoin’s price.
Crypto trader Rekt Capital pointed out that long downside wicks, like the one seen in Bitcoin’s recent price action, have historically been key indicators of the end of significant corrections, suggesting an upward rally.
According to CoinMarketCap, Bitcoin closed the week ending May 5 at $64,109. A 20% increase from this level would take it beyond its current all-time high, reaching $76,822. However, at the time of publication, Bitcoin’s price is $62,830, with some traders anticipating a potential range high of $72,000.
Crypto trader Mags has also predicted via X that Bitcoin’s price may fall slightly short of the $72,000 range high, but not significantly, stating, “If the price remains at the current levels, the next target would be around $72,000.”
Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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