Bitcoin may be on the verge of a major rally - here's why

Experienced trader Peter Brand looks at a Bitcoin market structure that is similar to gold's historical bull phases, suggesting that the cryptocurrency may be on the verge of a serious rally.

According to him, the "inverted head and shoulders" pattern on the price chart of the Bitcoin is similar to gold bull markets such as the SPDR Gold Trust (GLD).

According to Brand, this could be the start of a big move up. Comparing Bitcoin's movements to those of gold historically shows an inverse head and shoulders pattern in gold from 2020 to 2023, which usually suggests a bullish reversal. Judging by indicators such as ADX and moving averages, potential price increases can be suggested.

Bitcoin's chart is also showing an inverse head and shoulders pattern with support matching the 100-day exponential moving average (EMA) of $55,000-$60,000. The relative strength index (RSI) shows a result of 50.71, which means a neutral market.

One of the most important things is market sentiment. Analysts point to strong buying power and patterns indicating that the current cycle could end with a breakout and eventual rally. Recently, Bitcoin reached its 128-day moving average, a key level during bull markets.

Onchain data supports this bullish outlook, with crypto whales moving 20,000 BTC.

Moreover, Bitcoin price is currently oscillating between support and resistance levels. However, there is uncertainty as to whether Bitcoin will hold below $65,000 or head towards the $67,000 level in the coming weeks.

Although Bitcoin fell below $65,000 amid outflows from the US spot BTC ETF and hawkish comments made by Federal Reserve officials, the significant rally along with encouraging on-chain data points to a potential upside. MicroStrategy, Michael Saylor's company, plans to raise $700 million in an attempt to buy more BTC, which could potentially increase the price of the cryptocurrency in the future.