- Bitcoin price in the second half of Tuesday is trading in the red, down some 1.35%.
- BTC/USD price action remains weighted to the downside, following the rejection within supply around $12,000 region.
- Price action via the daily chart view is constructing a potential inverse head and shoulders pattern.
Spot rate: 11,202.10
Relative change: -2.30%
BTC/USD daily chart
- Price action via the daily is forming an inverse head and shoulders structure.
BTC/USD 60-minute chart
- The price via 60-minute chart view has extended to the do
BTC/USD makes it way above 61,8% Fibo retracement
- BTC/USD has recovered from the intraday low, more upside expected.
- Strong support is created at a psychological $7,000.
Bitcoin hit the intraday bottom at $7,092 and recovered to the area above $7,400 by the time of writing. While it is still below Wednesday’s high ($7,770), the upside momentum Amai gain traction if the price settles above pivotal $7,350 (61,8% Fibo retracement for the move from $3,226 to $13924). BTC/USD has gained over 3% of its value since the beginning of the day.
Bitcoin’s technical picture
On the 4-hour chart, SMA50 (Simple Moving Average) and SMA100 clustered around $7,430, may limit the further upside. However, one this barrier is out of the way; the bullish momentum may gain traction with the next focus on Wednesday’s high of $7,770. This area may attract short-term buyers and trigger another sell-off inside the previous range, though ha sustainable move higher will open up the way towards psychological $8,000.
The longer-term bull’s target awaits us on approach to $8,300. This area has been long identified as a strong resistance reinforced by SMA50 daily.
On the downside, the local support is created by $7,100 (the lower line of 4-hour Bollinger Band). Once it is out of the way, the sell-off is likely to gain traction with the next focus on $7,000 and $6,670 (the lower boundary of the daily Bollinger Band). It is followed by the recent low of $6,526.
BTC/USD, 4-hour chart