Market Overview

Bitcoin Inverted Double-Head And Shoulders Pattern Spotted

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  • Elon Musk says that Bitcoin’s structure is “quite brilliant”.
  • The correction to $4,000 will complete the inverted double head and shoulders pattern.

Bitcoin is on the rise for the third day this week. However, the trading yesterday saw it record mild gains after sliding towards the short-term support at $3,866.588. The crypto market is generally in the green after the bulls revived their journey of breaking barriers to the upside.

At the moment, Bitcoin is changing hands at $3,936.3. It has corrected upwards from the opening value at $3,890.11. This means that Bitcoin has added 1.19% on its value today. Since the beginning of the week, the trend has been in favor of the bulls with Bitcoin trading above $4,000 on some exchanges. However, according to the charts provided by FXStreet, BTC/USD corrected to highs around $3,971.58 before trimming the gains.

Meanwhile, the founder of Tesla Inc (NASDAQ: TSLA) and SpaceX, Elon Musk in a recent interview said that cryptocurrencies are a better transfer of value than paper money. He added that Bitcoin’s structure is “quite brilliant”.

Bitcoin is still trading within a bear range between $3,900 and $4,000. A correction must be made above $4,000 (supply zone) in order for the buyers to attack higher levels towards $4,100 and $4,200. The good thing is, technical levels as shown by the applied indicators are still positive to show that the bulls still have the power to push for a higher retracement in the short-term. The correction to $4,000 will complete the inverted double head and shoulders pattern. Reaction to this pattern could see Bitcoin ignite more gains towards $4,500.

BTC/USD 4-hour chart 

feb20-btc-636862589444014671.png

Posted-In: Bitcoin cryptocurrencies FXStreetCryptocurrency Fintech News Markets General

 

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