Bitcoin (BTC) Price Is Set To Move Higher, Here’s A Potential Target
The price of Bitcoin (BTC) is rebounding from a previous long-term resistance zone and forming short-term bullish signals. It’s expected to continue rising in the near future.
Long-term Head and Shoulders Pattern Target
The weekly chart shows that BTC has completed an inverse head and shoulders pattern and successfully confirmed the neckline as support during the week of June 12th to 19th (yellow arrows). This helped the price rise sharply to the key resistance zone at $31,500 in the following week.
Although it faced rejection afterward, such a strong rebound suggests that sentiment has shifted from selling on rallies to buying on dips, indicating that Bitcoin has formed a cycle low at $15,500 in November 2022.
Currently, BTC is in the process of rebounding from the neckline of the inverse head and shoulders pattern once again, forming a bullish pin bar candlestick (green arrow). If successful, it will confirm hidden bullish divergence in the weekly RSI, a bullish signal often leading to a continuation of the upward trend.
If this happens, BTC will continue towards the pattern target at $35,000, calculated by connecting the height of the pattern to the breakout point.
The daily chart shows that the price will succeed in bouncing on the weekly timeframe. It shows that BTC price created a false break below the $25,500 support zone (blue ellipse). This is a bullish signal often leading to strong upward movements.
Indeed, BTC has risen significantly since then and broken above a minor resistance zone at $26,400.
The daily RSI has formed significant bullish divergence prior to the entire upward move and is above 50, legitimizing the current upward movement.
Therefore, BTC may rise to the next minor resistance zone at $28,000 in the coming days.
Breaking through this level will help BTC reach a key resistance zone at $31,500.
Technical prospects indicate that BTC is likely to rise further in the coming days. The nearest target is found at $28,000, followed by $31,500 and $35,000.
This bullish outlook may be invalidated if BTC breaks down below the horizontal support zone at $25,500.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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