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Bitcoin chart pattern sets stage for breakout to $38,000

Bitcoin chart pattern sets stage for breakout to $38,000

Despite Bitcoin (BTC) now consolidating the gains it had accumulated in previous weeks following the streak of spot Bitcoin exchange-traded fund (ETF) applications, some cryptocurrency market analysts have observed a chance of a breakout after the current sweep.

Specifically, crypto trading expert Michaël van de Poppe has noted that the “sweep of the lows [is] indeed taking place,” during which Bitcoin could sweep $29,500 and drop further towards low $29,000, as he explained using a chart pattern analysis tweeted on July 17.

Having said that, as the renowned cryptocurrency guru further clarified, such price action could precede a bullish rally, with the flagship decentralized finance (DeFi) asset breaking out to $32,500, followed by an increase to $34,000, and finally to $38,000.

Bitcoin price action analysis. Source: Michaël van de Poppe

At the same time, the above analysis goes hand in hand with that of a pseudonymous crypto expert known as Trader Tardigrade, who more recently noted that Bitcoin was forming an inverse head and shoulders pattern on its 15-minute chart, stating that the target for this pattern breakout was $31,000.

Bitcoin forming inverse head and shoulders pattern. Source: Trader Tardigrade

On top of that, another cryptocurrency analyst, known on crypto Twitter as CryptoYoddha, has recently acknowledged that the maiden digital asset was demonstrating a pullback as well, arguing nonetheless that “the primary and the secondary structure is still going to be bullish.”

Bitcoin price analysis

As things stand, Bitcoin is currently changing hands at the price of $29,9879, which indicates a decline of 0.79% on the day and a drop of 1.76% across the last week while still hanging onto the 13.16% gain accumulated over the previous month, as per the latest data retrieved on July 18.

Bitcoin 30-day price chart. Source: Finbold

All things considered, Bitcoin has historically demonstrated the capability to achieve the bullish targets as suggested by the above experts, but its success will need to take into account more factors than historical patterns, including positive developments surrounding the coin, as well as the general atmosphere on the crypto and macroeconomic landscape.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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