Crypto

The latest bear market rally for bitcoin price is here, and it’s capped here | Cryptocurrency

  • The price of bitcoin shows that a bear market rally could be brewing on the 4-hour chart.
  • A break above $16,600 would confirm a move higher towards the June lows at $17,593.
  • This bullish prediction will be invalidated if the psychological $16,000 level is broken.

Bitcoin price is in a tight consolidation range vying for a breakout. But due to the nature of market sentiment, investors should not expect a bold and sustained BTC move before the start of the new week.

Read also: Bitcoin Weekly Forecast: Assessing the Chances of a Final Bear Market Rally for 2022

Bitcoin Price Shows Potential Bullish Forecast

Bitcoin price has formed an inverted head and shoulders pattern on the 4-hour chart. This lower inversion model contains three valleys, the central one, known as the head, being deeper than the other two. The depressions on either side of the head are called the shoulders, hence the namesake.

The 6% move predicted by this technical formation is obtained by measuring the distance from the right shoulder to the lowest point of the head and adding it to the breakout point at $16,630. This shows a target at $17,593, coinciding with the June 18 lows.

Therefore, this merger is a high level of accounting profit for traders trading Bitcoin prices. It should be noted that BTC has not yet formed a four-hour candle above the neck line at $16,330 to trigger this head and shoulder reversal prediction.

While this bullish outlook is plausible, a reversal from the $17,593 barrier would set the stage for Bitcoin price to retest $19,011, the highest level of trading volume in 2022. capped at $19,011.

BTC/USDT 1-day chart

On the other hand, if the price of bitcoin falls below the psychological level of $16,000 and fails to recover, this would indicate a lack of bullish momentum. The move will allow sellers to take control and hit BTC to retest the $15,721 support level. Here buyers can regroup and try again to recover.

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