Bitcoin Price Key Highlights
- Bitcoin price appears to be forming an inverse head and shoulders pattern on its 1-hour time frame.
- This is considered a classic reversal signal and if confirmed, price could pull up from its earlier drop.
- Technical indicators are also reflecting the presence of bullish momentum.
Bitcoin price might be forming an inverse head and shoulders pattern as it moves to test the neckline soon.
Technical Indicators Signals
The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is now to the upside. This adds confirmation that the uptrend could carry on from here, possibly enough to take bitcoin price past the neckline at the $6,600 level.
If so, bitcoin price could climb by around $1,000 since this is the height of the inverse head and shoulders reversal pattern. RSI is also pointing up to signal that buyers are taking control of price action from here. Stochastic is also on the move up to confirm bullish pressure, but this oscillator is also nearing overbought levels. Turning back down could bring selling pressure in.
Bitcoin price is attempting to recover lost ground long-term support levels continue to be defended by bulls. An improvement in risk sentiment, stemming from the prospect of US-China trade talks next week is also propping up cryptocurrencies. Then again, some say that this is just a short-squeeze from the earlier drops.
Still, it’s helpful to remember that the dollar remains safely bid as easing trade tensions could benefit the US economy at the end of the day. This could keep some downside pressure on BTCUSD in play. A number of analysts retained their bullish bets while experts also expressed confidence that betting on the industry is a long-term game rather than being rattled by these short-term drops.
Author: Sarah Jenn