Over the past day or two, the Bitcoin (BTC) price has finally started to settle. This is notable, as it comes after the cryptocurrency market was absolutely dominated by bears for the better half of a week, which brought the price of the leading cryptocurrency from $8,000 to $6,600 at the move’s worst.
As of the time of writing this, BTC is trading at $7,200, seemingly in the middle between a rock and a hard place, with there being heavy resistance at $7,400 and a liquidity gap in the low-$6,000s, some analysts have said.
Despite this, a bull case is purportedly starting to form for Bitcoin. It is as follows.
Bitcoin Bull Case Slowly Forming
Popular analyst Teddy Cleps recently noted that BTC is in the midst of forming a short-term bullish pattern that implies a reversal from the bear trend will take place. The pattern in question is an inverse head and shoulders — an inverse version of the infamous H&S chart pattern, which is marked by a sharp drop, multiple retests of a neckline, then a break above the neckline. If the chart pattern plays out in full, BTC may find itself heading back to $8,000 to trade in a new range.
https://twitter.com/teddycleps/status/1199475063734431746
It isn’t only the inverse head and shoulders pattern that shows Bitcoin may be ready to break higher yet again.
Per previous reports from Ethereum World News, analyst Velvet thinks that Bitcoin’s monthly chart implies that the bull run may soon resume. More specifically, they noted that
Bitcoin’s current price action looks much like it did at the end of 2015, just months prior to the start of the bull market that brought BTC from $1,000 to $20,000. More specifically, BTC remains on the verge of falling out of a secular bull market while the monthly RSI is just above 50, just like in late-2015. History repeating, their chart indicates, will see BTC start rallying into the start of 2020 past $10,000 and beyond.
Also, analyst Byzantine General recently pointed out in a recent tweet, BTC is likely going to hold the 21-month simple moving average, which sits in the mid-$6,000s at current. This has been the point at which BTC has bounced in two previous bull market retracements.
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