NEW DELHI: Bitcoin has been on a three-day winning run, gaining nearly 10% since Tuesday’s sell-off.
According to experts, investors must keep in mind that Bitcoin has a long way to go before it can hit a fresh all-time high.
For a few weeks now, the bears have been claiming that Bitcoin is in a massive header and shoulders pattern formation.
According to Kraken Research, Bitcoin’s bounce from $30,000 to $42,000 in January marked the “left shoulder” .
“The latest bounce from $30,000 to $42,000 and back to $30,000 makes the “the right shoulder.” Because the head & shoulders chart pattern is widely regarded as a bearish reversal pattern, many think that an eventual move back down through $30,000 will transpire into bitcoin plunging deeper into the crypto abyss.
“With Bitcoin down more than 50% from its all-time high, others see the asset’s return to the $30,000-$42,000 range as merely a mean version back down to consolidation that will set the stage for bitcoin trending higher later this year.