Bitcoin's Bullish Pattern Points to $76,000, While Traders Explore $200K Calls

By: Eva Baxter

Bitcoin's current volatility could soon pave the way for remarkable gains as traders have identified a bullish potential on the price chart. After many days of fluctuating around the $67,000 level, a promising pattern known as an inverse head and shoulders (iH&S) has been spotted. Despite its imperfections, this pattern is viewed as tradeable, signaling that a significant surge could be on the horizon.

The iH&S is a well-known bullish reversal indicator in technical analysis, signalling a potential upward reversal in price trends. In the case of Bitcoin, the pattern seems to be suggesting an upward movement, with a head at around $59,000 and shoulders around the $65,000 and $65,700 mark. If confirmed with a breakout above the pattern's neckline, predictions point at an ambitious goal of $73,000 to $76,000, aligning with Fibonacci extension levels of 1.618 and 2.

Interestingly, Bitcoin traders are reviving interest in the $200,000 call option after a gap of nearly three years, observing that a volume breakout could strengthen the possible upward journey. However, striking a note of caution, a stop loss (SL) level at around $65,680 has been identified, to guard against potential losses should the anticipated breakout fail to materialize.