The price of Bitcoin has started increasing again after reaching strong support. Now is traded at 63,482.17 level far above 59,510 yesterday's low. The price action has printed a potential Head & Shoulders pattern, but this formation is far from being confirmed.
Bitcoin is up by 5.31% in the last 24 hours and by 2.56% in the last 7-days. As you already know, BTC/USD was into a temporary correction after reaching a fresh all-time high of 67,016.50. The correction seems over after the price action failed to take out strong dynamic support.
BTC/USD Bullish Momentum!
Bitcoin has found strong support right on the first warning line (wl1) of the ascending pitchfork and now it has jumped above the 250% line and above the weekly pivot (62,308.04).
The 59,953.74 static support stopped the corrective phase. The bullish engulfing printed at the confluence area formed at the intersection between the 59,953.74 with the warning line (wl1) signaled that the downside movement could be over. Actually, today's breakout above 61,450 immediate high signaled a strong growth.
Bitcoin Prediction!
Stabilizing, consolidation, above the weekly pivot point (62,308.04) may signal more gains. the second warning line (wl2), the 64,895 level, and the uptrend line are seen as near-term resistance levels, upside obstacles.
The rate could be attracted by the confluence area formed at the intersection between these obstacles. Taking out these resistance levels indicates potential growth towards fresh new highs.
A larger correction could be activated only by a valid breakdown below 59,953.74.
The material has been provided by InstaForex Company - www.instaforex.com