Bitcoin Price: Inverse Head and Shoulders Hints to More Upside

Summary:

Bitcoin price formed an inverse head and shoulders pattern after a double bottom and now threatens to break to a new all-time high.

Bitcoin price looks bullish here as it recovered most of the recent move lower. The market formed a double bottom pattern at the $48,000 and now is back close to the $60,000 level. On top of the double bottom, Bitcoin formed an inverse head and shoulders that point to a new all-time high.

The frenzy on the cryptocurrency market continues. More and more investors turn their attention to digital assets, and Bitcoin is the favorite cryptocurrency for institutional investors.

If we compare it to gold, we see that this time the bounce in Bitcoin coincides with the bounce in the price of gold as well. Until recently, the two assets diverged – Bitcoin rose above $60,000, while gold declined from above $2,000 to below $1,700. This time it appears that the general dollar weakness is a reason for buying Bitcoin, and the technical picture points to even more upside.

Bitcoin Technical Analysis

An inverse head and shoulders pattern has a measured move equal to the distance from the lowest point in the pattern to the neckline projected from the neckline. Most of the time, the market retests the neckline, but that is not mandatory. Bulls may want to stay on the long side for a new all-time high, with a stop-loss order at $52,000.