Has Bitcoin Formed a Bottom? Inverse Head and Shoulders Points to $67,200

▲ Bitcoin (BTC) ©Dasol Ko

Bitcoin (BTC) has recovered to $64,000, leading to predictions that it could form a short-term bottom and rise to $67,200. If it moves as expected, it would be a 4.72% increase from the current price, but the processing of the U.S. crypto market structure bill, the Clarity Act, is considered a variable.

According to crypto media outlet Finbold on August 5 (local time), former fund manager Aksel Kibar analyzed that Bitcoin is likely to retest the $67,200 resistance level in the short term. At the time of writing, the price was $64,170, up more than 1% in 24 hours.

Kibar noted the possibility that approximately $58,570 recorded last month could be a short-term low. He explained that an inverse head-and-shoulders pattern, an early trend reversal signal, is forming on the chart, with the neckline located around $67,200. The diagnosis is that if this pattern completes, it could rebound to that price in August.

He also emphasized that the current chart does not show the bear flag pattern that triggered sell-offs in February and June. According to CoinMarketCap data, Bitcoin's market capitalization is approximately $1.28 trillion, and its 24-hour trading volume is approximately $23.06 billion.

However, the stagnation of the Clarity Act in the U.S. Senate is a concern. The media reported that if a bipartisan agreement is reached before the August recess, the upward trend towards $67,200 could strengthen, but if processing is delayed again, bearish sentiment could increase, invalidating Kibar's short-term outlook.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*