- Bitcoin forms an inverse head and shoulders pattern, upside movement to continue in the short-term.
- Thomas Lee reckons, “Bitcoin is the best house in a tough neighborhood.”
The 15-minutes timeframe chart for Bitcoin (BTC) shows that the crypto has formed an inverse neck and shoulders pattern as observed below. The price dipped further during yesterday’s trading to lows of $6,841.54 before embarking on an upward moving above the broken support at $6,900. Other resistance zones that BTC/USD cleared include $6,925, $6,950 as well as the critical $7,000.
As mentioned in the analysis published earlier in the day, the engulfing candle broke above the short-term resistance at $7,025, but turned bearish short of $7,050. The subtle lower corrections were stopped at $7,010 and since then, Bitcoin has been trading higher highs and higher lows. Bitcoin price has retraced steps above $7,050 and is currently trading slightly above $7,100.
If the trend continues with the same momentum, Bitcoin is likely to form a double-top pattern around $7,150. Consequently, lower corrections could follow but a support above $7,100 will be good enough for the buyers in the medium-term. In the meantime, $7,075 is the short-term support while $7,050 is a stronger support. The 50 SMA is above the 100 SMA to show that the buyers have the upper hand at the moment. Moreover, the stochastic is moving further into the overbought region.
In other news, while on CNBC’s Fast Money segment, Wall Street’s analysts and co-founder of Fundstrat, Thomas Lee suggested that Bitcoin upside momentum is not over yet. He backed his sentiments with the rising Bitcoin Dominance noting that it is still the most valued digital asset investment. Lee went ahead to explain:
“Bitcoin’s dominance has been creeping up. In fact, in the last couple of weeks, it has soared to the highest level all year and it has hit about 48%. So it tells us that the news we have seen, from the SEC saying that Bitcoin is a commodity, to ICE’s announcement and a potential for a (Bitcoin) ETF, are causing investors to decide that Bitcoin is the best house in a tough neighborhood. So I think that Bitcoin dominance is actually showing that the market is reacting to what is good news.”
Read more on Bitcoin (BTC) price analysis
BTC/USD 15-minutes chart
