Bitcoin Price Key Highlights
- In the previous weekly analysis, we highlighted an inverse head and shoulders pattern, which played well and acted as a catalyst for an upside move.
- The price is currently trading in a positive zone, as it settled above the neckline of the inverse head and shoulders pattern.
Bitcoin price after trading lower and finding support around 200.00 formed an inverse head and shoulders pattern for a move higher.
Inverse Head and Shoulders Pattern
This past week we stated that the 200.00 support area was a major barrier for sellers that prevented more downsides and pushed the price higher. There was an inverse head and shoulders pattern formed on the hourly chart, which played well and pushed the price higher. The price settled above the neckline resistance area of the inverse head and shoulders pattern. Moreover, the price cleared the 50% Fib retracement level of the last decline from the 268.00 high to 197.95 low.
There are many positive signs, which shows that the price might head higher in the near term. Additionally, the 100 hourly simple moving average was breached, which might act as