Bitcoin gathered plenty of potential energy during the weekend, and the price was now propelled to old highs. The BTC value was pulled out of the support at $22,897 as the investors recovered from Friday’s robust job reports.
The upwards momentum has been carried on to the weekday as the largest cryptocurrency by market capitalization was trading at $24,142 at press time.
Bitcoin Price above Head and Shoulders
The above chart indicated the formation of an inverse head and shoulders pattern. As the price stumbled at $22,897, it formed the first shoulder of the pattern, and a further drop to $22,410 gave rise to its head. Similarly, a sudden push from the investors at a low price of Bitcoin saved the asset from dropping further, and a neckline was visible at $23,460.
This inverse H&S pattern created a bullish bias in the market, and the value of Bitcoin is suspected to rise at least 5% from the breakout.
Crucial Price Points:
Breakout– $23,460
Confirmation of a bullish move– $23,645.95
Upwards Price Limit– $24,686.30
Expected % profit– 5.13%
However, as the price approached immediate resistance at $24,196, the BTC price needed to cross this point. If we zoom out, it can be seen that this level has been tested twice already, which could be a make-or-break situation for Bitcoin.
Once BTC surpasses the resistance, it could be a smooth sail to $24,686. Interestingly, $24,686 was also the supply zone meaning the traders could be tempted to sell at this level. Since the value of bitcoin witnessed a free fall from $28,000 to $20,000 in June, there was no significant support under $24,686. Therefore, selling pressure could push BTC back to $24,196 in the longer term.