Top chart analysis Ali Martinez has said that Bitcoin could move beyond $122k as the bearish head and shoulder pattern failed to form.
Earlier, a few experts were casting doubt on Bitcoin’s further growth, saying that a market correction is imminent, followed by a year or so of bear season. The latest development in Bitcoin clearly negates this statement. This was so because the inflow of corporate funds from MicroStrategy, Metaplanet, Marathon Digital, Riot Platforms, and others have ensured Bitcoin’s growth despite retail withdrawals.
Top Crypto Analyst Says Bitcoin Headed to $122k
Top crypto analyst Ali Martinez has cleared all doubts on the near term future of the crypto markets after his tweet showed that Bitcoin has shed the possibility of a bearish correction.
BTC’s daily charts have seen the breakdown of a bearish head and shoulders pattern that could sink Bitcoin’s price to $90k levels. This pattern had its shoulder at the $102k level. A breakout on the upside above the shoulder indicates that Bitcoin would rather move upside.
Bitcoin has lately seen high growth in the number of addresses holding between 100 to 1000 BTC, which at the current price of $101k represents whale addresses. The number of these addresses has now reached a record high.
What Pushes Bitcoin Upwards?
Several factors have been pushing BTC higher, which include corporate buying, US strategic reserves and government buying, and accumulation by Bitcoin whales.
Corporate buying in Bitcoin is very active these days, with MicroStrategy leading the pack. Other buyers, too, have emerged following MSTR’s model of debt-based buying. This has led to the emergence of other corporate buyers, like Metaplanet, Marathon Digital, Riot Platforms, and
New Bitcoin buyers also include government entities like the US States of Texas and Pennsylvania. This growing trend would also encourage more states to establish their own independent reserves. Further, the establishment of a Crypto Working Group under David Sacks inside the US Government establishes a clear intent of the US Federal govt to buy Bitcoins.
What is a Head and Shoulder Pattern?
The head and shoulders are a bearish reversal pattern, which indicates the possibility of a breakdown in price charts.
It has three sections: a shoulder, a Head, and another shoulder.
- The first shoulder is a series of consolidations after a rise in price.
- The price then forms a breakout followed by a rounded top called the head.
- The second shoulder is a zone of consolidation that forms after the rounding top sends the price downwards. This second shoulder forms on the same level as the first.
Finally, a breakdown occurs when the price moves below the second shoulder level.