• Bitcoin price action presents a buying opportunity to see Bitcoin rally more than 30%.
  • Bullish reversal up ahead will trigger a sizeable short squeeze.
  • The resumption of the bull market likely begins today.

Bitcoin price has found some significant support against a make-or-break price level. A large number of new short positions was opened near the close of yesterday’s candlestick – and those new short sellers are likely feeling the pressure as Bitcoin ticks higher.

Bitcoin price to explode close to its all-time highs

Bitcoin price has a fantastic early entry opportunity on its Point and Figure chart that is not present in any form on the candlestick chart. The entry is based on a Point and Figure pattern known as a Pole Pattern – with a slight deviation for an earlier entry.

The theoretical long setup for Bitcoin price is a buy stop on the 3-box reversal, currently at $48,500. The stop loss is a 4-box stop, currently at $46,500, and the profit target is $63,000.

Due to the nature of this Point and Figure pattern, as prices move lower, so does the buy stop. As a result, the stop loss remains a 4-box stop, but the profit target, based on the Vertical Profit Target Method, remains at $63,000.

BTC/USD $500/3-box Reversal Point and Figure Chart

The current trade represents a 7.25:1 reward for the risk setup, with an implied profit target 30.5% above the entry. A trailing stop of two to three boxes would help protect any profit generated after the triggered entry.

Because this theoretical long setup for Bitcoin price is based on the Pole Pattern setup, there is no invalidation point. As Bitcoin moves lower, so does the entry. Before any further upside momentum continues, traders should expect some resistance at the $55,000 range.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

FLOKI whales add 30 billion tokens to their holdings in May, meme coin rises 11% on the day

FLOKI whales add 30 billion tokens to their holdings in May, meme coin rises 11% on the day

Floki Inu (FLOKI) has noted a spike in on-chain metrics in May. The meme coin rallied alongside large market capitalization meme tokens like Dogecoin (DOGE), Shiba Inu (SHIB), Dogwifhat (WIF) and PEPE (PEPE) this cycle. 

More FLOKI News

Top 3 meme coins Dogecoin, Shiba Inu suffer price decline, Bonk price rallies

Top 3 meme coins Dogecoin, Shiba Inu suffer price decline, Bonk price rallies

Dogecoin (DOGE) and Shiba Inu (SHIB) decline on Tuesday amidst bearish on-chain metrics, as seen on Santiment. On the other hand, Bonk (BONK) price rallies amidst bullish technical indicators on its daily chart. 

More Meme coins News

XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55

XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55

Ripple holders shed their XRP holdings and took $20 million in profits since May 18. XRP social dominance is nearly at the same level, at 1.46%. XRP sustained above $0.52 on Tuesday but is down 1% on the day. 

More Ripple News

Bitcoin wallet tagged as Mt.Gox transferred nearly $2.93 billion in BTC, the asset hovers at around $68,000

Bitcoin wallet tagged as Mt.Gox transferred nearly $2.93 billion in BTC, the asset hovers at around $68,000

Bitcoin hovers around the $68,000 level on May 28, Tuesday as market participants brace for Mt.Gox transfers of BTC. The defunct crypto exchange’s wallet, tracked by on-chain intelligence trackers, have made BTC transfers to a new wallet. 

More Bitcoin News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP