Analyst Says Bitcoin Just Broke A Bullish Megaphone Pattern, What Are The Implications?
Bitcoin continues to maintain its bullish momentum even after some corrections following the breach above $44,000. Despite rising almost $15,000 in 30 days, the bullish sentiment has still not waned, especially among crypto analysts, who continue to expect more bullish strides from the cryptocurrency.
Bitcoin Breaks Bullish Megaphone Pattern
In a new analysis, crypto analyst TradingShot has referred to a peculiar pattern that the Bitcoin price has broken. According to the analyst, the crypto broke above a very bullish megaphone pattern, something that has been keeping the price muted for a while now.
As TradingShot explains, this megaphone pattern is important because it has been the pattern that has held Bitcoin back since it first made a local high on October 24. So a break out of this pattern is understandably very bullish for the price.
Source: Tradingview.com
“The previous Bullish Megaphone of September – October technically served as a consolidation belt before the price broke upwards to deliver a +31.86% peak from the Megaphone’s last Higher Low and +40.50% from its first Low,” TradingShot said.
Breaking out of the megaphone pattern suggests that there is more upside to come. If it goes as expected, then the crypto analyst believes that the BTC price could still make another move toward the $48,000 price target.
A Likely Path For BTC Price
The next stop for Bitcoin now would be to clear the $45,000 resistance which has remained elusive. However, this may soon be a problem of the past going by TradingShot’s analysis which suggests a breakout is on the horizon.
“The ROC shows a similar behavioral structure between the two patterns. If it continues this way, then a new +31.50% leg will make a perfect contact on 48220, which is the March 28 2022 High,” the crypto analyst explained.
They further add that this is “essentially the Bear Cycle’s first Lower High and a key Resistance level of the current Bull Cycle.” Given this, “Technically, as long as the 1D MA50 (blue trend-line) holds (has been doing so since Sep 28), that is a realistic end target for this bullish wave.” TradingShot stated.
Another crypto analyst known as Tony The Bull seems to be on the same bullish trend. In a Wednesday analysis, Tony reveals that “the green stair-stepping TDST support in Bitcoin hasn’t been broken since 2018.” As the analyst explains, the same primary bullish trend continues to apply even now.
“IMO, we are dealing with the same active primary trend, much more advanced and mature than anyone is expecting – hence why we are already lifting off while others wait for the halving,” Tony explained.
Note the green stair-stepping TDST support in #Bitcoin hasn’t been broken since 2018
IMO, we are dealing with the same active primary trend, much more advanced and mature than anyone is expecting – hence why we are already lifting off while others wait for the halving pic.twitter.com/Kga99uWSoy
— Tony “The Bull” (@tonythebullBTC) December 6, 2023
BTC bears start to gain dominance | Source: BTCUSD on Tradingview.com
Featured image from Publish0x, chart from Tradingview.com
