In our previous analysis on Bitcoin, we showed the possibility that price was forming a bullish pattern. The inverted head and shoulders pattern was in the process of creating the right hand shoulder. Price reached the neckline resistance this weekend but bulls so far are unable to break above resistance.
Red line - neckline resistance
In order for the inverted head and shoulders pattern to get activated, price needs to break above the neckline resistance. Today price reached the resistance but is getting rejected. Support and major pivot point is the right hand shoulder low at $46,359. Breaking below this level will cancel the bullish pattern and increase chances of more downside and specially below $43,121. If resistance is broken then the inverted head and shoulders pattern gets activated and our first target is at $60,150.
The material has been provided by InstaForex Company - www.instaforex.com