The close of trade this Sunday saw the price of Bitcoin (BTC) surge to as high as 7.28% against the USD ahead of the US trading session. As of press time, the BTC/USD pair was trading at $4158.
The price movement from the chats indicates that the pair is nearly completing an inverse head and shoulder formation. Its neckline appears as a near-term falling price pattern capping the firm upside recent movements. The most recent jump in the BTC/USD pair confirms what the bulls are attempting to break.
A break above the neckline level should set up a run that heads to the towards $4500 area. This resistance level is the best psychological, and its invalidation could confirm an extended upside price action that may lead to the $5000 area.
Traders Can Wait for the BTC/USD Pair to Close Above the Neckline Level to Validate the Authenticity of the Breakout
As of the time of writing, traders could watch the BTC/USD pair advance beyond the neckline to validate the authenticity of the breakout. This strategy will allow traders to go long near their respective long-term upside targets. As an alternative, traders can place a limit order just on or below the neckline, to get an execution in the event of a Bitcoin (BTC) price rebound.
Bitcoin (BTC) Price Today – BTC / USD
Other than the inverse H&S market formation, the technical analysis of BTC is mostly bullish looking at the near-term. The pair is trading beyond the 50-period MA. The RSI indicator is near 60, awaiting a jump to confirm a stronger bullish bias. We can see the MACD indicator inside a positive region. At the same time, traders may start believing that Bitcoin’s (BTC) price has actually bottomed out. While the digital asset market has located a near-term region at $3430, hence a bottom can’t be confirmed unless there are a steady break and consolidation above the $4500 level.
BTC/USD Intraday Analysis
The intraday analysis will be decided following parameters defined by the price action from today. The BTC/USD pair is trending upwards comfortably inside a rising parallel channel, which gives us cues of a potential entry and exit levels on each bounce as well as pullback action in the zone. The interim resistance position is located at $4244 while the interim support position is at $4081. The latest shift from the support line allowed movement to a long position near $4244. At the same time, a stop loss order has been placed at $4059 to minimize losses should the trend reverse.
A Break Above the $4244 Resistance Level Will Pave Way to $4351
After achieving the intrarange target, the channel resistance that coincides with $4351 as our upside target. A break above the $4244 resistance level would open a long order near $4351. We shall maintain our risk management technique by maintaining a stop or loss order at $4222 to leave the market on a little loss if a powerful pullback appears.
From the downside, a break beneath the channel support area would let us move into a short position near the 200-hour simple moving average while eyeing $3951 should an extended breakdown session be initiated. A stop-loss at the $4124 level will test our risk management strategy.