After setting up a head and shoulders pattern which saw a spike down through the $8,000 level and neckline of the pattern, we have seen BTCUSD brush aside the bearish momentum and recovered very well finding support above the key level of $8,000.
There is still a risk the head and shoulders pattern could play out, but is looking less likely given the quick reversal on the break of the neckline.
Interestingly, a break-out pattern is now setting up. Given the strength of the move from $6,000 to $8,000, it appears accumulation is now taking place. A break to the upside would target the $8,700 level with the possibility to overshoot into the consolidation above around $9,100, that triggered a sell off in mid-March. A break of this consolidation pattern would be extremely BULLISH .
On the other hand, should price break out to the downside, the head and shoulder target would still be in play that would shoot straight through the $8,000 level.
Enjoy.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
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Long targets hit. The consolidation zone above between $9,000 and $9,200 will be a big test.
Do you prefer cheese or toast, or is it simply the combination that floats your boat? Have you consider the addition of Marmite or Worscester sauce to your cheese on toast, or would that destroy your name? This should not be considered financial advice, do your own research.