In my previous Bitcoin analysis titled “Bitcoin Price Pump. 1000% Price Surge Started?” I talked in-depth about the bullish inverse head and shoulder pattern that was forming on the Bitcoin chart in the one-hour timeframe.
I also talked about the importance of the pattern’s neckline and how a break of this neckline could see the Bitcoin bullish momentum return for a while.
In that analysis, I pointed out the different levels of resistance and profit targets I was looking for the price to get to and probably bounce off of once this neckline was broken.
Well today, we saw that price prediction play out perfectly as Bitcoin obeyed the various levels I initially pointed out to and got to my first profit target with no issues. Now the big question is “what next?”
In this Bitcoin analysis, I will be talking about the current price action playing out on Bitcoin and also analyzing the two likely scenarios that might occur in the 24 to 48 hours.
A Break and Retest. More Bullish Momentum Or A Price Dump?
Currently, Bitcoin is retesting that inverse head and shoulder pattern neckline.
If this neckline holds strong and becomes a support for the price, we can expect to see more bullish momentum come into the market and for the Bitcoin price to begin moving higher.
Scenario 1: Bearish Resistance
While the Bitcoin bullish prediction is a very likely scenario, the first problem we might run into is the falling wedge top channel resistance.
This resistance is very important because it as held the Bitcoin price back on numerous occasions in the past.
And if the price is unable to produce a breakthrough in this bullish move, we might see bearish pressure return back into the Bitcoin market and push the price back down into the $8,900 regions.
If this bearish scenario occurs or a price scenario where the neckline support fails during the price retest, we can expect to see Bitcoin crash to at least the base channel of the rising triangle.
Scenario 2: Bullish Breakout
The second scenario I will be considering for the future price movement of Bitcoin is a bullish breakout of the falling wedge channel.
A bullish breakout like this will see more buyers coming into the market to take advantage of this bullish momentum.
My entry for this bullish move will be a break and close above the previous highs formed when price rejected the top of the falling wedge channel.
Once the Bitcoin price breaks and closes above that horizontal resistance, there is a very high likelihood it will continue to move higher.
And my target level for the bullish move is the traditional target for the head and shoulder pattern I talked about in my previous Bitcoin analysis “Bitcoin Price Pump. 1000% Price Surge Started?”
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my trading bitcoins for beginners Guide. You can also check my top list of bitcoin exchange sites to trade with.