Is Bitcoin Headed to $70k Next? An Insight from BTC Head and Shoulder Pattern and On-Chain Data

A popular crypto analyst with over 72,000 followers on X is making a bullish case for Bitcoin potentially hitting $70,000 next based on technical and on-chain data analysis. The analyst, known as “Mags” or “@thescalpingpro” on X, points to several factors that could fuel Bitcoin’s continued upward momentum.

In a recent tweet, Mags stated: “Bitcoin just closed above $60,000 on weekly. The wick below weekly support zone was a fakeout just to trap the breakout traders. Overall, it appears that the price is consolidating above the ATH. The next stop would be the range high or $70,000+.”

Further Insights Into the Possibility of BTC Entering $70k

Technical Analysis: Inverse Head and Shoulder Pattern
Based on our technical analysis, Bitcoin’s price chart has formed an inverse head and shoulder pattern, a bullish technical formation that often precedes a significant rally. As the right neckline of this pattern is currently forming, a breakout could potentially propel Bitcoin’s price towards the $71,000 resistance level.

However, the critical level Bitcoin needs to break through to spike to $70,000 is the $65,000 to $66,000 range. If the price fails to break out from this level, Bitcoin may continue trading sideways or experience another dip before resuming its upward trajectory.

On-Chain Data: Influx of Money into Bitcoin
BTC’s bullish outlook is further supported by on-chain data indicating a significant inflow of money into Bitcoin. According to the popular on-chain analytics platform Spot On Chain, Bitcoin ETFs experienced a net inflow of $217 million on May 7.

Spot On Chain highlighted that the net inflow has remained positive, with no Bitcoin ETFs experiencing an outflow for two consecutive trading days. Additionally, the Fidelity Bitcoin ETF (FBTC) recorded the highest inflow among the 10 Bitcoin ETFs, at $99.2 million.

With technical patterns and on-chain data painting a bullish picture, the crypto community eagerly awaits whether Bitcoin will indeed make a push towards the $70,000 mark in the near future.