Bitcoin Soars with Bullish Tech Signals and Economic Sparks

Bitcoin surges past $65,000 after positive US inflation data. Traders monitor Gann Fans and inverse head-and-shoulders patterns as key indicators. Gann Fans suggest a potential rise to $70,000 if Bitcoin sustains its bullish momentum. Conversely, a loss of momentum could lead to sideways or downtrend continuation. Bitcoin's dominance rises as it seeks to establish $63,000 as a support level.

Bitcoin Surges Amidst Bullish Technical Indicators and Economic Data

United States inflation data released on May 12, 2022, sparked optimism in the cryptocurrency market, propelling Bitcoin (BTC) to a 7.54% gain in the ensuing 24 hours. The price of BTC surged past $65,000, igniting anticipation among traders who are now closely monitoring two crucial technical indicators that could potentially drive Bitcoin towards $70,000.

Gann Fans: A Key Indicator for Market Momentum

Prominent pseudonymous cryptocurrency trader Blockchain Mane highlighted the significance of the Gann Fans model, a technical analysis tool that examines geometric and cyclical movements in the crypto market. They emphasized the model's ability to gauge Bitcoin's potential to "remain bullish."

"Gann Fans are intriguing, akin to a time and price momentum indicator," said Blockchain Mane. "They aid in visualizing market cycles and price action."

According to Blockchain Mane, the current Gann square, a 5x5 grid with column 1 representing the cycle's commencement, reveals a pivotal point in the market cycle. They anticipate a "markup phase until the end of May" if Bitcoin maintains an upward trajectory. However, they caution that a downside break could result in "sideways, downtrend continuation until the end of May."

Core Inflation and Resistance Level

The Gann Fans pattern has gained prominence following the release of core inflation data, which has reached its lowest level since 2021 at 3.6%. This data bolstering speculation of potential interest rate cuts.

Blockchain Mane anticipates Bitcoin to transition its previous resistance level of $63,000 into its new support level, viewing this as a "bullish indicator." They advocate for "sideway price action" to allow for the development of supporting narratives, otherwise, it could impede the growth potential of altcoins.

Data from TradingView indicates that Bitcoin's dominance, the ratio of Bitcoin's market capitalization to the total market capitalization of all other cryptocurrencies, has increased by 2.23% to 55.99% over the past week.

Inverse Head-and-Shoulders Pattern: A Bullish Signal

Another technical indicator pointing to a potential Bitcoin upswing is the inverse head-and-shoulders pattern. This pattern, which resembles an inverted head and shoulders with the left and right shoulders below the neckline, signals a bullish reversal.

Pseudonymous cryptocurrency trader Milkybull Crypto shared this pattern with their followers on May 15, suggesting that Bitcoin is poised "for a bounce." According to Milkybull Crypto, the completion of this pattern could drive Bitcoin towards its next key price level of $70,000, potentially even surpassing its all-time high of $74,580.

Cautionary Note

It is imperative to note that cryptocurrency markets remain highly volatile and subject to unpredictable fluctuations. While technical indicators and economic data can provide valuable insights, they are not absolute predictors of future price movements. Investors are advised to exercise caution, conduct thorough research, and only invest what they can afford to lose.