While Bitcoin might have surged more than 19% in a matter of days, it is important to understand that the Bitcoin price is still very much in the bearish territory and there is a very high probability that we might see a sell-off begin again soon!
This inverse head and shoulder pattern on the 1-hour timeframe helps us explain more and tells us which level needs to be broken for us to become bullish again for Bitcoin.
Watch This Pattern
The $57,196 price level is the neckline of the inverse head and shoulder pattern and the key level the Bitcoin price must break to continue surging higher.
However, right now Bitcoin has only formed one part of the shoulders and in the coming days, we can expect Bitcoin to continue ranging as it forms the right shoulder of the inverse head and shoulder pattern.
Bitcoin Bullish Target
The bullish target to aim for is the $67,290 price region. This target pushes Bitcoin firmly back into the ascending triangle pattern it broke out from recently, signifying that the bullish run has finally resumed.
For the above bullish scenario to play out, we need to see the Bitcoin price break and close above the $57,196 neckline. This neckline resistance is very important because a failure to breakthrough could result in a Bitcoin sell-off back down to the $50k support region or lower in the coming days.
Waiting for a price break above the $57,196 is the best option to take.
How To Trade This Setup
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Looking For Ethereum Trading Ideas?
We created a short Youtube video on Ethereum where we explained what exactly is going on with price what we expect the Altcoin to do next!
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You can speed up your learning journey by reading our How To Trade Bitcoin Guide. This guide is the best for crypto traders looking to accelerate their success. You can also check out our top list of Best Bitcoin Exchanges To Trade With.
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