Earlier in the week, it looked like Bitcoin (BTC/USD) was topping after an almost month-long rally. But now it looks like the market wants to extend this rally for the rest of the month, or at least pass the current high around $8400 towards $9000.
BTC/USD 1H Chart
No Head and Shoulders:
- Earlier in the week, BTC/USD was forming a head and shoulders pattern with the neckline around $7840.
- However, we can see that price held above this neckline and price eventually rallied above the shoulder area and is now approaching the head area around $8400.
- I think a break above this resistance would push BTC/USD towards $9000 or a little higher, closer to a previous resistance area seen on the 4H chart below.
- This $9000-$9300 area will be a key support/resistance pivot area as well. Sine BTC/USD is still bearish-neutral in 2018, we should respect the key resistance that bitcoin will face when it approaches $9000.