Bitcoin's Bullish Pattern Could Take It To $14,000
Updated
Even though the BTC price has been decreasing rapidly over the past week, it is still possible that this decrease is a part of a longer-term bullish pattern, more specifically an inverse head and shoulders.
The pattern has been transpiring over a long period of time, more specifically 174 days. In addition, a breakout that travels the entire height of the pattern would take the price all the way to $14,000, slightly above the June 2019 highs. Therefore, it would confirm that the price is in a bullish trend.
However, the price is currently resting above the $7700 support level (green), with the next one being at $7000(red). A price close below the green line would invalidate the inverse H&S, but would still allow for a different bullish pattern to be created, such as the double/triple bottom. A price close below the red line would likely mean that the downward trend will continue.
On the other hand, the price has recently fallen below the 200-day MA. If it were to reclaim it, it would indicate that the BTC price wants to move higher and is in the process of completing the right shoulder.
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The pattern has been transpiring over a long period of time, more specifically 174 days. In addition, a breakout that travels the entire height of the pattern would take the price all the way to $14,000, slightly above the June 2019 highs. Therefore, it would confirm that the price is in a bullish trend.
However, the price is currently resting above the $7700 support level (green), with the next one being at $7000(red). A price close below the green line would invalidate the inverse H&S, but would still allow for a different bullish pattern to be created, such as the double/triple bottom. A price close below the red line would likely mean that the downward trend will continue.
On the other hand, the price has recently fallen below the 200-day MA. If it were to reclaim it, it would indicate that the BTC price wants to move higher and is in the process of completing the right shoulder.
If you like the analysis and want me to continue doing them, please press the LIKE button.
Note
Possible shorter-term inverse H&S in place, which is being created entirely inside the right shoulder of the longer-term one.
The $8500 area is crucial in confirming/invalidating this pattern. A price increase above it following by its validation as support would confirm that the head is being completed. Afterwards, the area would likely act as support for the right shoulder.
On the other hand, a rejection of this area would invalidate the shorter-term H&S. The long-term one would still be valid.
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