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BTC/USD: Bitcoin Inverse Head and Shoulders Pattern Triggered

    Summary:
  • Bitcoin prices (BTCUSD), appeared to have completed an inverse head and shoulders pattern with a target of $14275. Read our outlook now.

At the time of writing, Bitcoin prices (BTCUSD), appeared to have completed an inverse head and shoulders pattern with a target of $14275. The pattern has been forming since June 26 when bitcoin’s price slid from $13884 to $9620 over five days.

The June 27 low of $10284 is considered to be the left shoulder, while the July 5 low at $10768 is the right shoulder, and the July 6 low of $11048 is the head. The so-called “neckline” can be drawn via the June 28 and July 4 highs, and earlier today at 9:30 AM London time, the price cut thought that neckline, but also the July 6 high.

It is hard to know if the price indeed has managed to break out from the last few day’s consolidation, but the short-term trend is bullish since July 2, as the price followed up with a higher low on July 5, and then July 6.  I will maintain a bullish stance as long as the price trades above the July 6 low at $11067.Don’t miss a beat! Follow us on Twitter.

Bitcoin prices: Six-hour chart