Bitcoin is currently demonstrating price behavior characteristic of an "early bull market," according to Fidelity Investments’ Director of Global Macro, Jurrien Timmer.
So far, the bulls are refusing to yield despite facing very strong resistance.
The head-and-shoulders neckline
In a recent update on X, Timmer shared a detailed daily chart outlining Bitcoin's current market structure. The chart shows a massive macro head-and-shoulders topping pattern, characterized by a staggering peak at $126,251 and a subsequent drop to a local low of $60,033.
Currently, Bitcoin is charting a steady ascending channel out of that $60,033 bottom, attempting to challenge the critical "neckline" of the aforementioned head-and-shoulders pattern (roughly established around the $80,554 pivot point).
According to the slow stochastics momentum oscillator featured at the bottom of Timmer's chart, this recent upward grind has pushed Bitcoin into deeply "overbought" territory. However, instead of suffering a sharp rejection or sell-off, which is typical when an asset hits overbought levels near major resistance, Bitcoin is holding its ground.
"Bitcoin continues to challenge the neckline of a large head-and-shoulders top, while working off its overbought condition with little or no price damage," Timmer noted. "This is very much how early bull markets have generally behaved."
As reported by U.Today, Bitcoin's monthly Bollinger Bands have contracted to their "tightest ever" levels. In technical analysis, a prolonged Bollinger Band "squeeze" acts like a coiled spring.
Taking leadership over gold
When it comes to the macro environment, Timmer has noted that both gold and Bitcoin remain incredibly valuable safety nets. However, the momentum between the two has recently diverged.
"Gold has been lackluster lately after a very strong run," Timmer stated, pointing out a changing of the guard in the safe-haven market. "With Bitcoin taking over the leadership for now."
Dan Burgin
