Bitcoin price prediction: can reverse head and shoulder save Bitcoin?

Bitcoin price prediction analysists have found a reverse head and shoulder pattern in the price that may be calling for bullish returns.

Prices rose rapidly as Bitcoin rose from around three thousand dollars ($3,000) to over thirteen thousand dollars ($13,000).

However, things changed once price correction came into action. Prices stumbled as Bitcoin’s price fell once again. This time it fell from over thirteen thousand dollars ($13,000) to below ninety-five hundred dollars ($9,500).

Now the price has started rising once again and crossed the ten-thousand dollars mark once again on August 1. Bitcoin is trading at ten thousand four hundred and seventy-eight dollars ($10,478) at the time of writing.

Across the short-term time frame of two hours, we can see that Bitcoin’s price action has formed an inverse head and shoulder (H&S) pattern. This pattern is considered to be a bullish one making breakout above much more probable. A deeper observation shows that the projection would lead to eleven thousand dollars mark ($11,000).

Bitcoin price prediction: can reverse head and shoulder save Bitcoin? 2Bitcoin price chart by Trading View

On the other hand, the daily frames show that Bitcoin has been moving around a descending support line. Bitcoin has tested the support twice on 16 and 28 July with rapid recovery each time.

Bitcoin price prediction: can reverse head and shoulder save Bitcoin? 3Bitcoin price chart by Trading View

Moreover, a resistance area lies just below the eleven thousand dollars ($11,000) mark lining with the inverted H&S target. A bullish hammer started on July 28 (1) and has since established a bullish engulfing candle (2).

The first minor resistance lies at ten thousand four hundred dollars ($10,400) and further above at around eleven thousand dollars ($11,000).

Furthermore, price action has risen above the ten-day moving average (MA) and reached the twenty-day moving average. The last time it touched the 20-day MA the price switched to bearish and started decreasing. However, if the price closes above it the price will climb a long way up.

In conclusion, Bitcoin’s price has created a bullish pattern: inverted head and shoulders pattern and price are now expected to breakout above. However, the price action will complete the inverted H&S pattern before its breakout.