As bitcoin makes the long-awaited correction to $50,000, a potential upside correction is imminent as a bullish pattern that could potentially send bitcoin breaking out $58,000 has formed. Following a sharp dip from last week, bitcoin bulls surged to $53,000 where support was sustained.
The dip sent prices down by 8%, but the bulls were quick to commence rerun and prices soon surged to $55,000. There has been a major price rejection from the aforementioned level. Bitcoin bulls had managed to maintain prices at $55,000. At press time, Bitcoin attempts to break through that price level as mild gains send Bitcoin to $54,977.
On the hourly chart, an inverse head and shoulder pattern is building up, with a bearish resistance trend pattern brewing at $58,000. If Bitcoin bulls build enough momentum to break out, Bitcoin could potentially retest $60,000.
However, failure to hold pressure at the said level could send Bitcoin dropping below $54,000. The dip could continue to swell up if an upward correction isn’t recorded in the near term, signaling a possible sag to levels below $50,000.
BTCUSD Chart By TradingViewDespite the sideways pattern the market is taking, on-chain metrics indicate that a bullish trend is fundamentally inevitable. According to Glassnode’s recent data, the current market volatility hasn’t stopped supply from reducing.
Image Via GlassnodeAccording to the metrics displayed in the chart, Bitcoin’s supply is dropping meteorically. This bullish signal indicates that there are more hands willing to buy than there are sellers. As Bitcoin becomes scarce in supply, demand for the asset rises.
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