Some bitcoin investors and crypto analysts are predicting that Bitcoin will bounce back and rocket to a close above $14,000. This comes amid an emerging inverse head and shoulder pattern. According to Investopedia, a head and shoulders pattern is a reliable indicator in predicting a reversal from bearish to bullish. Crypto traders are therefore suggesting that an inverse pattern, or IHS is an indicator of going from bearish to bullish.
Presently, bitcoin has had three lows, with the middle low being the lowest of the three (i.e., an IHS pattern). We might soon expect one more crash after it hits the neckline, followed by a meteoric rise past $10,000. Once it breaks free of resistance around $10,190, some analysts have said that it could close above $14,000.
The Halvening, Coronavirus and More
The halvening is still set for May 2020, when it will be even more difficult to mine new bitcoins. Combine this with the fears about coronavirus, and hinderances to supply chains as a consequence, and such a rise may become even more likely.
Seymour Nunez is a contributing writer for Cash Tech News who enjoys writing about the intersection of blockchain technology and everyday life.
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