The value of Bitcoin (BTC) has completed its inverse shoulders and head reversal pattern, and the digital currency is now waiting for confirmation. The digital currency is testing its reversal formation neckline and a confirmation could lead the value of the coin to the $7,800 mark and beyond.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is trading at $6,707 after an increase of 4.4 percent over the past twenty-four hours. Bitcoin is still the largest digital currency in the world with a market cap of $115.20 billion and a trading volume of $4.99 billion over the past twenty-four hours.
Bitcoin (BTC) Price Analysis
The 100-Day simple moving average is currently over the longer-term 200-Day simple moving average, and this indicates that the path of least resistance is currently moving higher. This indicates that there is a higher possibility that the reversal will be sustained from here.
The value of the digital currency has also moved higher over the dynamic inflection points of the moving averages to indicate stronger bullish pressure. Nevertheless, the relative strength index is also showing signs of overbought conditions to indicate the exhaustion of buyers.
The stochastic oscillator has also increased to the overbought territory to indicate profit-taking and a likely dip. The MAs could still hold a short-term support but a decline beneath the right shoulder could indicate a return in selling pressure.
An increase over the neckline could result in an upward movement to at least the same height as the formation of the chart. This span $5,800.00 to $6,800.00 so the increase could last by a minimum of $1k to take the price of the digital currency up to $7,800 or more.
The value of Bitcoin (BTC) surged higher from confirmation that one of the largest asset management firms in the world – BlackRock, wants to invest in the digital currency industry. This spiked the value of the coin as well as other digital currencies in the market.