Even though bitcoin price saw very little action in yesterday’s trading, BTCUSD still looks bullish today. Should we brace for a potential rally beyond the $10,000.00 psychological handle?
On the 4-hour time frame, it can be seen that the cryptocurrency has made higher lows after a series of lower lows. Consequently, an inverse head and shoulders chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is widely considered as a bullish reversal pattern.
Further affirming this bullish setup is the recent price action on bitcoin price. It has been consolidating in a very tight range following a sharp rally. Consequently, a bullish flag chart pattern has formed just above neckline resistance. A strong bullish close above the high of June 22 at $9,798.76 could mean that BTCUSD could soon retest its June 10 highs at $10,011.40.
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Alternatively, a bearish close below the low of June 23 at $9,571.00 would invalidate the bullish flag. It could mean that there are still sellers left in the market. Bitcoin price could soon then fall to $9,418.00 where it may test the rising trendline (from connecting the lows of June 15, June 20, and June 21) for support.
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