How Hedera [HBAR] bulls can take advantage of this pattern breakout

Coin World reports:
After rebounding from the $0.06 support level, HBAR broke out of the bearish pattern on the daily chart. HBAR's long/short ratio shows a slight bullish edge

Hedera's recent reversal from the $0.06 support level laid the foundation for bulls to end the bearish rebound. Therefore, the altcoin finally broke out of the bearish pattern. In the past week, several green candles appeared on its daily chart, trying to break through its recent EMA.

If the sellers cause a short-term pullback, will the bulls trigger another rebound from the $0.06 support level? At the time of writing, HBAR is trading at around $0.0722.

Can HBAR buyers trigger a bull run?

From a relatively long-term perspective, HBAR has been in an uptrend after breaking through the 200-day moving average (green) in October 2023. The altcoin has continuously seen higher lows and highs and has grown by more than 164% in the five months since then.

However, after losing the key $0.09 resistance (and then support) on the daily chart, HBAR has seen a sharp downtrend. As a result, it has fallen by more than 23% in the past month.

After taking an increasingly bearish edge, it broke below the key 200-day MA and formed a descending channel in this downtrend.

The recent bounce from the $0.06 support helped buyers break out of consecutive red candles. Bulls sparked a 20% rally in four days, but the 50-day MA (yellow) remains a strong barrier.

Nonetheless, this led to a downside channel breakout, which could set the stage for buyers to spark a rally in the near term.

If the bears test the $0.06 level again, buyers could spark an uptrend and attempt to break above the short-term moving average. In this case, buyers will look to test the $0.088 level near the 200-day MA.

A break below the $0.06 support could significantly delay any near-term recovery attempt. Here, sellers will aim to pull the price towards the $0.05 level before a possible reversal.

Interestingly, the Awesome Oscillator subsequently marked two higher peaks, with another peak aiming to find a point above the ‘0’ level. A continued upward trend in the indicator could confirm a bullish double peak, reaffirming our bullish bias.

However, at press time, the RSI has fallen below 50 and has not yet confirmed a bullish edge. A hidden bearish divergence on the indicator would show a bearish edge.

HBAR is at a critical position

According to data from Coinglass, the 24-hour long/short ratio has a reading of 0.8515. This indicates that the proportion of short positions is higher than long positions. However, Binance’s HBAR/USDT long/short ratio significantly highlights the bullish advantage, at 2.1.

Finally, most altcoins have a strong correlation with Bitcoin. Therefore, it is crucial to consider Bitcoin’s trend and assess the overall sentiment before making a buying decision.