Following a Nice Breakout, Is Inverse H&S Evolving?

A quick weekend update: We can safely say that Bitcoin held on top the significant $3600 support line (along with the mid-term ascending trend line), following a decent green candle of over $300 that returned the coin close to the $4000 mark.

Despite the fact that the chances for a bearish continuation were higher, the bulls managed to keep up the $3600 support, and as of writing this, the last action could turn into a bullish inverse Head and Shoulders formation with immediate targets around $5000.

Looking at the 1-day & 4-hour charts

Bitcoin is now above the last days’ trading range (between $3700 and $3850), whereas $3850 prior resistance had turned into a major support level, along with the 50 days moving average line (marked in purple on the 4-hour chart).The next bullish targets could be at $3950, $4050 (along with the significant 1-day chart’s 50 days moving average), and $4200. As a reminder, Bitcoin was testing those levels just a week ago.Looking on the broader picture, an inverse Head and Shoulders pattern might be evolving (can be seen on the following charts). In the case of a breakout of the neckline around ~$4200, Bitcoin could get immediate targets around the $5000 area.From the bear side, the closest support lies at $3850. Below is the 200 days moving average line around $3700, along with support level and the ascending trend-line. The next support level is the $3600 from yesterday.Stochastic RSI oscillator of the 4-hour chart is about to cross over around the overbought zone. As can be seen on the following chart, the last times it had crossed there (Dec.21 and Dec.24), Bitcoin had lost nearly 10% from its value. This support the possibility of a correction down, which is reasonable after yesterday’s gains.The trading volume had slightly increased, however, may be due to the weekend and holidays the volume levels are still considered low.BitFinex’s open short positions had decreased to 31.1K BTC, near their monthly low.

BTC/USD BitStamp 4-Hour chart


BTC/USD BitStamp 1-Day chart


Be the first to know about our price analysis, crypto news and trading tips: Follow us on Telegram or subscribe to our weekly newsletter.

CryptoPotato Video Channel

More news for you:

Bitfinex and Ethfinex Plan Servers Migration on Jan.7: Time For Price Manipulations While Offline?

By Toju Ometoruwa  /  Dec 29, 2018

Ethereum ICOs Treasury Selloff Continues: 434K ETH Already Sold In December (Led By Filecoin)

By Yuval Gov  /  Dec 28, 2018

Bitcoin Price Analysis Dec.28: Sideways Done As BTC Breaks Down To Retest $3600

By Yuval Gov  /  Dec 28, 2018

Electrum Wallet Hacked: Over $900K Got Stolen in a Phishing Attack

By Toju Ometoruwa  /  Dec 27, 2018

Co-Founder of The Largest Brazillian Bitcoin Exchange Gustavo Schiavon Died

By Ali Raza  /  Dec 27, 2018

Bitcoin Price Analysis Dec.27: BTC Sideways Action Will Breakout Soon?

By Yuval Gov  /  Dec 27, 2018

Crypto Market Update Dec.26: Positive Week For Bitcoin & Altcoins Following Positive News

By Yoni Berger  /  Dec 26, 2018

Weekly Price Analysis Overview Dec.26: Bitcoin, Ethereum, Bitcoin Cash and Bytecoin

By Yoni Berger  /  Dec 26, 2018

Ethereum Price Analysis Dec.26: ETH Is Following Bitcoin’s Decline in an Interesting Spot

By Jonathan Goldman  /  Dec 26, 2018

How will the Creation of 2 Million Illegitimate Bitcoin Private (BTCP) Affect the Future of the Bitcoin’s Descendant?

By Toju Ometoruwa  /  Dec 26, 2018

Ripple XRP Is Now a Base-pair on Binance: What Does This Mean For the Future of ‘The Standard’?

By Toju Ometoruwa  /  Dec 25, 2018

Bitcoin Price Analysis Dec.25: BTC Drops As The Bears Are Still Here

By Yuval Gov  /  Dec 25, 2018

Can Crypto Become the 2019 Best Performing Asset Class Due to Ending Quantitative Easing (QE)?

By Toju Ometoruwa  /  Dec 24, 2018

Bitcoin Hash Rate Follows Bitcoin and Gains Over 40% Within the Past Two Weeks

By Ali Raza  /  Dec 24, 2018

Ripple XRP Price Analysis Dec.24: Following 50% Weekly Increase, What’s Coming Up?

By Jonathan Goldman  /  Dec 24, 2018

Bitcoin Price Analysis Dec.24: Green On The Screen – The Bullish Bitcoin Is Facing $4200

By Yuval Gov  /  Dec 24, 2018

Ethereum Price Analysis Dec.23: ETH Gains 30% In 2 Days. What’s Next?

By Jonathan Goldman  /  Dec 23, 2018

Bitcoin Price Analysis Dec.23: Same Range, Healthy But Fragile

By Yuval Gov  /  Dec 23, 2018

Next CME Bitcoin Futures Settle on December 28: Upcoming Price Action?

By Benjamin Pirus  /  Dec 23, 2018

Market Watch: Ethereum Outstands with a 17.6% Gains and Hits the $130

By Mandy Williams  /  Dec 23, 2018

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); = id;
js.src = “//”;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));
Article Source…