Bitcoin has broken out of compression in its usual style and closes in on the YTD highs (and potentially beyond).
Since our prior analysis, Bitcoin has broken out of its triangle to the upside and confirmed an inverted head and shoulders pattern with a break of its neckline. As a reminder, inverted head and shoulders usually appear during downtrends but can also be used as continuation patterns in uptrends.
- 12,100 has held as support and prices if broken to a new cycle high to suggest the next phase of the trend is underway.
- The bias remains bullish above 12,100
- If successful, the pattern projects an initial target around, 14,290, but can eventually travel further and is certainly something to consider given the strength of the underlying trend.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.