Peter Lewis Brandt, a seasoned crypto trader and blockchain expert, has called the attention of his over 696k Twitter followers to an H&S pattern that keeps appearing on the Bitcoin(BTC) daily chart.
Brandt made his discovery known via a tweet on his verified Twitter handle, where he shared a Bitcoin chart with the caption, “A head and shoulders should be taken seriously if it is completed.”
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Interpreting Readings On The Bitcoin Chart
From the chart Brandt shared, readers can deduce that the left shoulder came about when BTC skyrocketed from a possible $20,000 price in February and settled between $26,000 and $ 28,000 in March.
On the other hand, the right shoulder manifested when BTC recovered from a devastating plunge between April 19th and 24th. Recall that Bitcoin also formed the head in April after enjoying a series of impressive performances that saw it reach as high as $31,000 on April 14.
A head and shoulders should be taken seriously if it is completed $BTC pic.twitter.com/n5ZiLasmUC
— Peter Brandt (@PeterLBrandt) May 11, 2023
What Does A Head And Shoulder Pattern Signify?
A head and shoulder pattern implies a sudden trend reversal from a bullish outlook to a bearish one. H&S pattern involves three peaks. These peaks are a single middle peak and two shoulder peaks. The middle peak is the head and highest of the three peaks. The remaining two peaks are the “Shoulder,” and they are both almost equal in size.
H&S pattern is recognized using a neckline that connects the shoulders’ lows. Once the price falls below possible support at the neckline, then an H&S pattern becomes likely.
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How H&S Pattern Seem To Have Affected BTC Upswing
So far, BTC appears to drop some of the gains it picked up during its remarkable market activities in early 2023. Despite dropping some of its profits, Bitcoin still maintains an impressive 65% in profits this year. In the end, if the head and shoulder patterns remain tenable, then BTC will be witnessing an end to its latest rally.
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