For Bitcoin to remain bullish, the $22,378 key support must hold! This 1-hour key level stands as the only support stopping the BTC price from plummeting lower to the $20,500 price level.
A crash like this would push the value of Bitcoin nearly -10% down if it plays out. This is the reason the BTC bulls must respect and continue to defend this key level at all costs!
The question now is “can they defend this $22,378 key support or should we expect to see the price sell-off in the coming days?”
In this Bitcoin analysis, we will be talking only about the bullish price scenario for Bitcoin. We will be breaking down: what must happen for Bitcoin to rally higher in the coming days and the key levels we are watching.
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Bitcoin Bullish Prediction!
The first key point to note is:
We can only remain bullish on Bitcoin if and only if the price continues to respect and trade above the $22,378 key support in the 1-hour timeframe!
If this $22,378 key support is respected, we can then begin to expect a further rally in the price of Bitcoin in the coming days. The key pattern we are watching closely for this potential rally in the Bitcoin price chat is the Inverse Head and Shoulders Pattern.
Bitcoin Inverse Head and Shoulders Pattern
The Inverse head and shoulders pattern is very popular among traders and is used to spot a potential reversal in a bearish market.
For the Bitcoin price chart, that bounce would be the end of the mini bearish trend we experienced all through last week. However, for this bullish rally to be confirmed, the Bitcoin price will need to break through and close above the Neckline region.
Until this bullish breakout happens, we will be standing aside and waiting for that bullish confirmation to play out.
Why Is This Pattern So Important?
This Inverse Head and Shoulders Pattern is so important because of its location!
This bullish reversal pattern is forming at the $22,378 key support we want the Bitcoin bulls to defend. So if we see a price breakout to the upside that would be double confirmation that the bulls are in control.
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