Bitcoin Stuck in Sideways Trend: Will Inverse Head and Shoulders Pattern Send Price to $76K?
The Bitcoin price has been trading sideways since early June, and some analysts believe this could be an accumulation period coming to an end. The short-term chart shows a potential topping out at the confluence of a descending channel and the $64,360 horizontal resistance level.
Most shorter term momentum indicators have reached their top limits, suggesting that the price may start to move down from here. This could lead to yet another lower high in a series of such highs going back to July 21st, with potential support at $62,250 and $60K if the bull market trendline breaks.
However, an inverse head and shoulders pattern is forming on the daily chart, which could be bullish for Bitcoin. If this pattern completes, it has a good chance of sending the price up to $76K, but caution should be employed as the balance of probabilities suggest a rejection at the top of the channel.
The weekly time frame shows that all is still hanging in the balance, with the price above the bull market trendline. A breakout or rejection will depend on the price action for the rest of the week, which could determine whether the inverse head and shoulders pattern plays out or not.