The last time we looked at Bitcoin the price was setting up to complete an “Inverse Head and Shoulders” pattern. Today, one of our “4 Charts Proving We’re Near The End of The Bitcoin Bear Market” (I highly recommend it reading it) appear to be on the edge of playing out with BTC/USD hovering just above the $6700 price range.
So, what could be the next high-probability price move for Bitcoin going forward?
All we need is for the price to break the neckline at $6800 with good volume for a price move towards $7950. But there are warning signs we cannot ignore.
Bitcoin Weekly Chart Overview
The weekly BTC/USD chart is showing some highly bullish signals that would conclude that we have reached bottoming action.
- Bullish – The MACD is curling up with what appears to be an upcoming crossover to the upside.
- Bullish – According to the “TD Sequential” indicator, we have just completed an exhaustion cycle leading up to a possible reversal point. “TD Sequential” is an exhaustion cycle indicator that identifies trend reversals. It uses exhaustion points numbered “1-9” with “9” being the potential exhaustion point and reversal of a trend.
- Bearish – The weekly RSI has only reached 42,5 which is not a huge concern but could be a signal that there could be additional downside down the line.
Bitcoin Daily Chart Overview
The daily BTC/USD looks the most bullish of the three. A clear inverse head and shoulders pattern which looks ripe for a breakout! That doesn’t mean you shouldn’t exercise caution as there’s always the slim chance the bulls could get played. There are a few warning signs we’ll need to look out for as well.
- Bullish – The RSI is curling up with plenty of upside to go. This is good.
- Bullish – According to the “TD Sequential” indicator, we’re about to trade above the “1” candle ($6750) which would be a good bullish entry.
- Bullish – As mentioned before, the inverted head and shoulders pattern is already complete. All we need is for the price to break the neckline at $6800 with good volume for a price move towards $7950. Everything looks text-book bullish, BUT before you go all-in you might want to look at the 4-hour chart. Coming next.
Bitcoin Price Today – 4-Hour Chart Overview
It’s not all sunshine and rainbows when it comes to higher timeframes. Currently, the price is still being rejected by the $6800 barrier which means that we’re probably going to see some sideways movement before we can go higher. That’s why I would caution anyone going long right now as we’re facing a potential pullback.
- Short-term Bearish – The RSI is in oversold territory. It would be best to wait for it to reset before opening a long position.
- Short-term Bearish – According to the “TD Sequential” indicator, we have just hit an exhaustion point which means we should expect a 1-4 candle pullback/correction.
- Short-term Bearish – The MACD is curling down and looking like it wants to cross downwards.
Overall, its looking pretty great for the bulls. With the almost-complete inverse head and shoulder pattern higher prices look almost inevitable. The only thing you need to look out for is going in too early and catching a pullback; as we do have a bearish-trifecta on the 4-hour chart. Right now your best bet would wait for a confirmed breakout with high volume above the $6800 neckline with a target of $7950.