Bitcoin price found support at an inverse head and shoulders pattern’s neckline
The measured move points to more upside for Bitcoin
There is no significant resistance until the $48k level
Bitcoin’s price holds above the key $30k level, and the price action is bullish while above $25k. This is the level that offered support on the recent downward trend as the neckline of an inverse head and shoulders pattern rejected the price.
From a fundamental perspective, Bitcoin remains bullish while the US dollar’s bearish trend continues. While strengthening lately, the dollar’s move higher is not convincing, as reflected by the EUR/USD exchange rate still hovering around 1.10.
Yesterday, the Fed’s Chair, Jerome Powell, participated in a panel at the ECB Forum in Sintra. He was clear in saying that the Fed did not pause but skipped a rate hike in June.
While his comments were hawkish, so were the comments of other panelists, such as the Bank of England’s Governor or the European Central Bank’s President. Therefore, the dollar weakness may dominate markets during the summer months should investors perceive other central banks as more hawkish than the Fed.
Bitcoin chart by TradingView
Did Bitcoin bottom in late 2022?
One question is on every crypto investor this year – did Bitcoin bottom in late 2022?
Sure enough, the price action following the December 2022 low gives bulls hope. Bitcoin’s price action also suggests that a major bottom might be in place.
An inverse head and shoulders pattern points to more upside. The fact that the market retested the neckline and was rejected by it shows that bulls are still in control. In other words, the price action reinforces the bullish case.
Finally, now that Bitcoin’s price is at the year’s high, there is no significant resistance until $48k. This is the 2022 high, and it looks like the market is building energy to break higher.
