Bitcoin continues to show good support throughout this week, with bullish momentum almost driving the asset over the $6,800 mark earlier today before briefly correcting.
As a further $30 billion flows back into the global crypto market, Q3 is already shaping up to be a pivotal moment in reversing the recent bearish sentiment. Historically this time of year has proven to be bullish for Bitcoin, as investors flock back into the asset after shaking off the post-bear market blues.
Looking at the BTC/USD over 3hr candles we can see that the asset is falling well inside an inverse head and shoulders pattern, retracing back towards the neck line at the 0.5 fib level / $6,830.
The most recent bull run has completed the head of the pattern and now we are expecting BTC to correct from the neck line and find support at 0.618 fib level at $6,575, before completing the right shoulder during the next surge. This is supported by the RSI indicator where we can see that the price action is close to breaking out of the channel into the overbought region, where a pullback should follow.
Once the asset breaks clear from the neck line we should expect a strong bullish phase to drive BTC back up towards $7,000. This is supplemented by a soon-to-be golden crossover between the 50/200 EMA which should converge once BTC climbs over the neckline threshold. This will be a strong continuation signal that strong buying momentum is building behind the #1 cryptocurrency.
Looking at the Ichimoku indicator we can also observe a bullish T/K crossing over the recent 3hr candle activity with a big supporting kumo cloud stretching out in front of the price action.
Bitcoin (BTC) Price Prediction
Breakout targets for this bullish inverse head and shoulders patterns are set from the 0.5 fib neckline level at $6,830.
Price target 1: The first price target for BTC when it breaks out from the neckline will likely be around the $7,740 resistance level below the 0.0 fib level (13.31% ROI). This is at the same level where BTC fell from during the strong bearish decline over a month ago.
From here it’s likely that Bitcoin will meet strong bearish opposition that will force it to find support at the 0.382 fib level ($7,086).
Price target 2: From this supporting level, BTC bulls should be able to regain composure and break beyond the softer resistance above and retrace back towards the 0.0 fib level / $7,913 (15.85% ROI). This will then position BTC to retest the bullish falling wedge resistance level above where we could see the asset enter into a new bullish phase.
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