- Bitcoin price is toying with the idea of a bull run likely to ride on the inverted H&S pattern.
- BTC/USD recovery from the weekly low at $7,650 stalls under $8,000.
Spot rate: $7,917
Relative change: -12
Percentage change: -0.15%
Trend: Bearish bias
BTC/USD daily chart
Bitcoin price is battling increased selling activities at $8,000. The price has settled above $7,900 after advancing from $7,650 support. The freefall from $9,000 activated the completion of an impressive inverted head-and-shoulders (H&S) pattern. A bullish reversal is expected to emanate as the right shoulder of the pattern completes its formation. BTC/USD is staring into a possible bull run that could restore its ‘glory’ above $10,000 and pull it to the recent high at $10,500.
BTC/USD hour chart
Short term analysis in the hourly range shows the bulls relatively in control. The MACD has recovered significantly following the dip from -196 to the current level at -50. A visible bullish divergence from the MACD shows that buying activities are gradually increasing. The RSI also shows emphasizes on growing bullish influence with its upward slopping motion from levels at 9.52.
However, the price remains under the moving averages where the 50 SMA is holding the position at 8,158 and the 100 SMA at $8,600. BTC/USD needs to jump above $8,000 to escape the hovering bearish cloud and allow the bulls to focus on levels towards $9,000.