Bitcoin Bulls Ready For Battle: Here’s Why…….
The Conclusion for today’s Bitcoin Analysis: Price consolidating between $3683.30 and $3544.50 could give rise to a new bullish swing upwards that will see the price of Bitcoin close above $4384.0.
The previous post for Bitcoin (which you can find here) discussed the formation of an inverted, complex Head and Shoulders pattern (or inverted, complex, Head and shoulders bottom) that had not yet being completed until price closed above ~$4,258.80 where the neckline for the pattern would be positioned.
The price of Bitcoin is currently at support between $3,683.30 and $3,544.50 as indicated on the 1 hour timeframe chart. The bottom reversal pattern (inverted, complex, Head and shoulders) mentioned above can also still be monitored with a close above the neckline used as confirmation for a long (buy) position.
Also, indicated on the chart is a bearish channel with its lower boundary close to the lower level of horizontal support at ~$3,544.50. This makes the lower price level important to watch for two reasons:
(1) Price closing below $3,544.50 i.e. Point of invalidation [POI] does suggest further lower prices for Bitcoin.
(2) Price consolidating around the lower price level ($3,544.50) and the lower boundary of the bearish channel could provide a solid base for bulls, and therefore the next bullish swing upwards.
Possible trajectories as indicated on the chart includes price holding at upper level of support prior to development of a bullish swing (pink dotted lines) or price holding retracing to the lower level of support and then picking up bullish momentum (blue dotted lines).
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