From yesterday’s Bitcoin price analysis: “The inverse Head and Shoulders pattern is alive; breaking the neckline at $6800 resistance level, will set immediate target of around $7800.” As we all may have seen, Bitcoin had a very nice breaking-up green candle with HUGE amount of trading volume. Resistance levels at $6800, $7000 and $7300 were breached.
What we expect now? Usually after such a move we expect a correction – RSI levels are way high (means market is overbought). This might be somewhere around $7300 resistance-turned support, or $7200 where 38.2% Fibonacci level lies. Resistance lies at around $7800 – $7900 (also the Inverse head and shoulders pattern target).
BTC/USD BitFinex 4 Hours chart
Source: Crypto Potato