Last week, bitcoin price marked its third-week of losses when it finished 1.78% in the red. BTCUSD closed at $9,118.01 after opening at $9,287.89. However, technicals on the 1-hour time frame shows that the cryptocurrency may soon recoup some of its gains.
After bottoming out at $8,830.63 last week, bitcoin price has begun to make higher lows. Because this follows after a series of lower lows, 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 indicator. A strong close above $9,161.50 which is above the 100 SMA and neckline, could trigger a potential rally to near-term resistance at $9,478.05.This price coincides with the falling trendline when you connect the highs of June 1 and June 22 which becomes apparent on the 4-hour time frame. A strong close above this price could mean that there may be enough buyers in the market. Should this happen, we may soon see BTCUSD retest its June 22 highs at $9,798.76 where it topped on June 22.
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On the other hand, be wary of a close below today’s lows at $9,073.46. A bearish close could invalidate the inverse head and shoulders pattern and imply that sellers are still dominating trading. Should this happen, we could soon see bitcoin price fall to last week’s lows at $8,830.63.
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