- The reaction to an inverted head-and-shoulder pattern finally yields as Bitcoin rises above $7,600.
- Bitcoin bulls must stay focused on $8,000 and establish support above $7,500.
Bitcoin finally broke past broke the supply zone resistance at $7,400. The upward correction or if you like breakout took place on the account of an inverted head-and-shoulders pattern discussed on Wednesday. The momentum swept past $7,500 as well as $7,600. However, Bitcoin stalled short of $7,700 forming a high at $7,685.
The price is teetering above the moving averages on Thursday during the Asian session. Besides, the 50 SMA has crossed above the 100 SMA on the 1-hour chart to show an increase in bullish influence.
The Relative Strength Index is retreating from the oversold (region above 70) to signal the retreat following the resistance at $7,700. Bitcoin buyers must find and establish support above $7,500 to ensure that the downside is protected as they focus on pushing Bitcoin above $8,000.
BTC/USD 1-hour chart