BTC Analysis: Inverse Head and Shoulders Formation Signals Bulli

7 Feb

💎BTC is currently exhibiting signs of an inverse head and shoulders pattern, with the right shoulder consolidating for a longer duration. This prolonged consolidation increases the likelihood of a bullish outcome, as selling tends to occur rapidly while bullish movements take time to develop. Moreover, the price has already surpassed the previous resistance level of 43,598, indicating a shift in market sentiment favoring the bulls.

💎Confirmation of this pattern awaits a breakout above the resistance level of 44,478. Such a breakout would create room for further bullish momentum, with potential targets near 46,000 and 47,600.

💎Conversely, a bearish scenario would entail a breakdown below the support level of 41,333. This would invalidate the inverse head and shoulders pattern and potentially form a lower high, increasing the likelihood of a bearish trend. In this scenario, downside targets could be expected at 39,727 and 39,031.