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$3,568.75 2.62096
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$583.06 2.83944
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$186.80 2.67719
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Shiba Inu
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$0.0000318 6.79631
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$0.0000080 5.46707
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Bitcoin
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$70,695.00 2.9663
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$3,568.75 2.62096
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BNB
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XRP
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Shiba Inu
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$0.0000080 5.46707
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Bonk
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$0.0000279 10.89828
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Bitcoin
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$70,695.00 2.9663
Bitcoin price
Ethereum
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$3,568.75 2.62096
Ethereum price
BNB
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$583.06 2.83944
BNB price
Solana
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$186.80 2.67719
Solana price
XRP
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$0.6304210 3.07394
XRP price
Shiba Inu
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$0.0000318 6.79631
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Bonk
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Bullish Price Pattern for Bitcoin Identified by Bloomberg Analysts

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Bullish Price Pattern for Bitcoin Identified by Bloomberg Analysts

Despite the overall downtrend observed in the crypto market for the past several months, Bloomberg’s analysts have identified a strong bullish pattern that indicates a high likelihood of a rapid BTC price increase within the following days.

They claim that the existing pattern can be interpreted as a reverse head and shoulders pattern, a traditionally strong indicator in technical analysis. Bloomberg’s market analysts refer to the “head” formed at the level of about $35,000 and almost symmetrical “shoulders” at the level of around $42,000. According to the traditional technical analysis, the formation of this pattern should presuppose the reversal of the previous trend. In the case under consideration, Bitcoin is likely to be able to reverse the previous downtrend that was largely observed from the moment it reached the all-time-high level in November. Although the analyzed pattern is already formed, Bloomberg’s experts suggest that long positions should be opened only after the price exceeds the neckline that corresponds to the price level of about $44,600. The existing estimates indicate that the BTC price is likely to reach the level of $53,000 within the newly formed price pattern, thus creating considerable opportunities for crypto investors. The ability of the price to overcome the resistance level of $53,000 will indicate the most realistic scenario for the following months. If Bitcoin cannot overcome the new resistance level, the price is likely to decline to the current channel of about $40,000-$45,000. Otherwise, the price may continue to increase, and the resistance level may become a new support level. Only in this case, the BTC price may test the all-time-high level again.

Potential Implications for Crypto Market

Bloomberg’s technical analysis has a number of significant implications for the entire crypto market. In particular, the market is likely to follow Bitcoin’s new pattern. Although the current degree of market uncertainty remains at a high level, crypto investors are still well-prepared for utilizing emerging opportunities due to the belief of the local bottom being already reached. While the growing regulatory pressure makes it more difficult for the crypto market to restore to the historically maximum levels, the partial restoration of the BTC price to the level above $50,000 appears to be justified. In this case, the total crypto market capitalization may increase up to $2.5 trillion within the following weeks. Such dynamics are plausible as they can provide the required financial support to NFTs, DeFi, Metaverse, and other innovative crypto projects that require additional liquidity and investments. Due to the uncertainty in the market, a large number of investors will continue increasing their BTC holdings, even at the expense of other established crypto assets such as Ethereum. Therefore, Bitcoin’s price changes will be crucial for affecting the overall dynamics of the crypto market in terms of its structure, capitalization, and mainstream appeals. If the current projection formulated by Bloomberg’s analysts is confirmed, the growing number of crypto assets can potentially benefit from the growing investors’ interest and increased financing of the major crypto initiatives.

Hidden Risks and Obstacles

The high reliability of the reversal head and shoulders pattern confirms the likelihood of sustainable crypto market appreciation in the following weeks. At the same time, other fundamental factors may intervene in this process, thus causing serious price deviations from the set target of $53,000 for BTC. First, the regulatory pressure may increase considerably with the closer regulations in the US and Russia which may potentially affect the profitability of crypto investments globally. The increasing tax rates for miners in Kazakhstan may also prevent newcomers from entering the industry. The Federal Reserve is also expected to increase the base rate, thus reducing the amount of freely available funds that may be used by crypto investors. Second, the macroeconomic statistics in the US may directly affect the socioeconomic perceptions of investors. For instance, higher unemployment rates and lower economic growth may adversely affect the demand for crypto assets. Third, some geopolitical events such as the Russo-Ukrainian escalation may cause additional concerns for many strategic investors with negative short-term effects on the prices of BTC and other major cryptocurrencies. Therefore, while Bloomberg’s predictions are well-supported, they should still be complemented with the relevant fundamental analysis of the major opportunities and risks present in the major markets. Follow Us on Google News