If we look at bitcoin chart on H4 time-frame and higher, we can see the formation of an inverted "head and shoulders" pattern. According to the classic technical analysis, this reversal figure and breakthrough the "neck" level (resistance at $ 6,670) will signify rapid growth of the market about the size of the head. For bitcoin, this mark is at the level of $ 7,700. And all this can happen if the market can break through the resistance level of $ 6,670 and today hold on at current levels.
Of course, there is a risk that market can return to area 6 000-5 800 dollars. This is the February local minimums and the level of psychological support. However, shortly before the start of the American trading session on Wednesday, there is no indication that the bears took the initiative. The market stabilized around the $ 6250 mark - this is the mark of the right shoulder of the figure we had mentioned earlier. The whole question now is whether the bulls will be able to keep this level. Very interesting situation.
Yesterday, the market declined to the level of $ 6,260 formed another negative trading session on the daily chart, while the relative strength index (RSI) turned in favor of the bears (returned below 50.00).
It is also curious that the capitalization of the digital bitcoin market today amounted to 110 billion dollars, today the volume is at the level of 116 billion. Amid the decline, the crypto currency lost more than $ 6 billion of volume capitalization.