Briefly-
- Bitcoin has formed a double bottom formation.
- The leading crypto follows a descending resistance level.
- BTC might be printing a near-term inverse head & shoulders setup.
Bitcoin has made three trials at overcoming the resistance at $20,600 but failed. Nevertheless, the bellwether crypto makes another move (4th) to challenge the level.
Bitcoin has been plunging beneath a plunging resistance level since 5 April. Meanwhile, the line recently triggered rejection on 7 June. That saw the world’s largest crypto plummeting towards the $17,622 lows on 18 June.
The asset rebounded afterward, creating a double bottom-like pattern. Meanwhile, the 2nd bottom exceeded the first one. Furthermore, the Relative Strength Index also recorded a higher low before escaping its oversold territory.
The mentioned descending resistance currently stands at $22,000. This level might present hurdles if Bitcoin continues its upside movements. While publishing this content, BTC changed hands at $20,217, gaining 1.56% over the previous day.
Near-Term Bitcoin Pattern
The 6hr chart indicates a potential inverse head & shoulders pattern for Bitcoin. That means a bullish formation for the leading crypto. If so, Bitcoin finished the right shoulder and attempted to overcome the neckline. Also, the most probable wave count confirms BTC has reached a bottom.
The Relative Strength has triggered a bullish divergence while its trend-line remains intact, supporting the pattern’s creation. A decisive breakout that explores the pattern’s entire height would propel BTC to $25,000. That would see it overcoming the mentioned descending resistance level.
Breakout Attempt
Lastly, the 2hr chart indicated that Bitcoin has overcome a descending resistance and recorded three failed trials at moving beyond the resistance zone at $20,600. Meanwhile, resistances weaken with each touch.
That might see BTC eventually breaking out as expected. That matches the outlook from the 6hr chart. Moreover, the Relative Strength Index has secured footing beyond 50, confirming bullishness for the near-term trend.
Nevertheless, bulls should ensure massive volumes to annul prevailing bearish tendencies. Bears have dominated the cryptocurrency industry as they cancel all revival attempts. It remains crucial to witness upcoming actions following the ongoing mini-rally. Stay tuned for developing news.
