The first pattern identified is a bull flag, commonly observed during an uptrend, suggesting that the price is likely to continue its upward trajectory. According to Kibar, a breakout confirmation above the $31,200 resistance level could result in further gains for Bitcoin, approximately matching the length of the pole. Conversely, if the support level of the bull flag is breached, the pattern becomes invalidated, and a continuation of the upward trend becomes less likely. Kibar highlights the critical support level at $29,500 based on the chart analysis.
Bitcoin also recently broke out of a head and shoulders pattern, characterized by three peaks, with the middle peak slightly higher than the two sides, forming a head and two shoulders. This breakout propelled Bitcoin’s price above $31,000. However, Kibar suggests that Bitcoin has yet to reach the price target of the head and shoulders pattern, which stands at $34,000.
Head and Shoulders Breakout: Bitcoin Eyes $34,000 Price Target
While Bitcoin’s price movements have been relatively stagnant in recent weeks, with the cryptocurrency trading within a tight range, market participants await the upcoming U.S. inflation report for June, which could potentially influence Bitcoin’s price action.
SEBA Bank notes that key levels to watch for Bitcoin are $29,500 and $31,500, with the twenty-day moving average near the psychologically significant $30,000 mark. The bank anticipates potential breakouts after the release of the inflation data, with economists forecasting a slight cooling of the year-on-year CPI to 3.1% in June.
Coinbase Shares Surge: Surveillance-Sharing Agreement Boosts Market Sentiment
Additionally, Coinbase experienced a surge in its shares after disclosing a surveillance-sharing agreement with Cboe’s BZX Exchange for several of its spot Bitcoin price in pounds-traded fund (ETF) applications. Coinbase’s shares gained as much as 16% on Tuesday, prompting Cathie Wood’s ARK Invest to sell $12 million worth of Coinbase shares. Despite the sales, ARK Invest still holds nearly 11 million shares of Coinbase across its funds.
Bitcoin’s performance in the market remains significant, and traders will closely monitor the chart patterns and upcoming events to gauge the cryptocurrency’s future direction.