We have spotted the bullish head & should pattern formation after a long period (6 months). The cryptocurrency has broken up to its highest level since post-Christmas 2018 this morning.
The near-term outlook remains favorable, which has already rebounded strongly since testing the support at 3120$ at the mid-Dec 2018. A small bullish head & shoulder pattern has formed in the daily chart, while the daily indicators are mixed with RSI has been propelling higher, but oscillator has turned bearish. Turning to higher time frame (weekly) indicators are incredibly bullish.
Under these conditions, keep an eye on the initial resistance 4063$ above this 4225$ exists. A breakout above these levels would strengthen the upward momentum with a new target the resistance 4500$ its 50MA and 4650$. A step above its 50MA could extend its rise towards 4800$, 5000$ and 5300$.
Supports are located at 3900$, 3700$ and 3550/3475$.
After experienced a serious correction more than 80.00% from 2017 high’s, the Bitcoin is trading at 4150$ at the time of preparing this and we do believe the price likely to consolidate between 5750$-3000$ in the near term.
It is very hard to predict but our base case scenario is that the price likely to hover around 200MA, 3000$ in the coming weeks. A move below 2975$ could drag further lower towards 2500$-2200$ and 1900$ per coin.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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