Possible Bitcoin bullish inverse head and shoulder pattern.
The biggest problem i foresee for the bulls are the 55EMA and horizontal resistance. Currently the 1D 55EMA is sitting right on the resistance of $6870, this is also currently the top of the and neckline. If the bulls manage to break through all this resistance with good , one cannot deny at least in the short term, a market reversal is occuring.
Ideally you'd want to see a lower during the decline of the head (for an iH&S) compared to the left shoulder followed by an increase in on the advance back up to signify increased buying pressure rather than relaxed selling pressure. In this case, we got neither, as the head had fairly equal on the way down relative to the left shoulder and lower on the way back up than down. At least the right shoulder is low though.
I do believe though that many stops will be placed just above this , and if the bulls do break it we may see a domino effect of people buying BTC . The log support at 7. 25k or so will likely have turned to resistance so would play long to around that area, a great profit.
TDLR: breaking $6870 with is very , and first target is $7200. If the resistance proves too much, good short opportunity may come into play.
$7800 $BTC level has got some serious resistance. looking on 1W TF.
50% fib level
Horizontal resistance level
This will not be easy for the bulls to break soon, RSI still overbought on several time frames doesn't help. I'm expecting a healthy pullback to atleast $7200, put it's possible back to the old resistance/neckline which should turn to support at $6800, though this is not likely as sentiment is very bullish atm.
So overall i'm expecting a bit of profit taking and retracement, but honestly we could breakup at anytime with how bullish things are at the moment.