Bitcoin (BTC) Hints at Possible Price Correction If This Pattern Validates

Bitcoin (BTC), the largest cryptocurrency by market capitalization, may experience a price correction if a potential pattern on its daily chart is validated.

Ali, a cryptocurrency analyst, points out a potential head-and-shoulders pattern forming on the Bitcoin daily chart.

The head-and-shoulders chart pattern is depicted by three peaks, with the center peak being the highest. The head-and-shoulders chart shows a bullish-to-bearish trend reversal and might indicate that an upward trend is coming to an end.

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Aside from that, Ali stated that the TD Sequential indicator on the BTC daily chart may hint at a possible sell signal. Also, the RSI has reached 74.21 — a level that has triggered sharp corrections since March.

Having said this, Ali believes an impending price correction might be on the horizon until BTC manages to log a daily candlestick close to over $31,560. In the event of a price correction, Bitcoin might reach $29,500 or even $28,630.

At the time of writing, BTC was up 2.19% in the last 24 hours to $30,601.

History suggests otherwise

If history is any indicator, Bitcoin's current advance, spurred by optimism about new demand from exchange-traded funds, may have further to run.

Bitcoin gained 10.29% in the last seven days, the highest weekly gain since June, as traders bet on the first U.S.-spot bitcoin ETF being approved in the coming weeks.

Bloomberg observed that weekly gains of at least that magnitude have predicted a 10% average Bitcoin rise over the next month for the past five years.

According to CoinMarketCap data, Bitcoin has recovered 87% this year and currently accounts for 51.4% of the $1.16 trillion digital-asset market, a level of dominance it last held in 2021. The digital asset is still far below its 2021 high of roughly $69,000.