An analyst has identified a bullish chart pattern in the Grayscale Bitcoin Trust's (GBTC) price chart, specifically an inverse head-and-shoulders structure.
This pattern, which occurs after a prolonged downtrend, signals a potential bullish reversal trend once prices surpass the resistance line, known as the neckline. GBTC has recently reached a six-month high of $13.54 and could experience further gains if it breaks past the neckline hurdle. The reversal formation will be confirmed with a daily close above $13.00, with a potential measured objective at $19.00, almost a 50% gain. The bullish pattern follows a more than 80% price slide and is expected to fill the price gap between $15 and $18. Additionally, GBTC has rallied more than 17% this week due to the U.S. court's questioning of the Securities and Exchange Commission's rejection of Grayscale's attempts to convert the trust into an ETF.