Bitcoin has been troubled to seek out any important and sustained buying pressure within the time following its retrace from its late October highs of $10,600, however, its recent surge from lows of $6,500 was the primary time in weeks that bulls put up a big fight against bears.
Analysts are currently noting that the price action that has taken place over the past many days is also shaping up to be a bullish technical pattern that generally marks the lowest of downtrends. Naturally, this begs the question: is Bitcoin’s bottom in?
Bitcoin Finds Support at $7,000, But Momentum Falters
At the time of writing, Bitcoin is trading up marginally at its current worth of $7,200, that marks a small climb from its daily lows of simply over $7,000, however a notable decline from its daily highs of $7,400.
It will seem that Bitcoin has established a contemporary trading range between these 2 price levels, with support at the previous and resistance at the latter.
This in-progress bout of sideways trading has happened when BTC’s bulls did not maintain the sturdy momentum that was sparked once it abroaches $6,500 late last week. the lack of follow-through on this movement could point to underlying weakness amongst patrons and will mean that it absolutely was merely a dead cat bounce.
Will an Inverse Head and Shoulders Pattern Send BTC Rocketing Higher?
One doubtless optimistic issue that ought to be rigorously thought of within the near-term is that the inverse head and shoulders formation that Bitcoin has been forming over the past week.
Big Chonis, a distinguished cryptocurrency analyst on Twitter, spoke regarding this risk during a recent tweet, explaining that any notable face within the near-term may send Bitcoin past a long-established resistance line and make sure the bullish pattern that's presently forming.
“$BTC – hard not to state the obvious as this could be forming and Inverse H&S but it’s more important for the price to get above the descending line of resistance first that has held for weeks… Right shoulder lows likely not in yet… #bitcoin funding rate gone negative,” he noted while pointing to the chart seen below.
Although it may prove to be an arduous task for bulls to propel BTC past its multi-week descending resistance line, any sustained upward movement could shift the market’s tides back into the favor of buyers.