What to Know:
- Bitcoin surged past $113,600, confirming a bullish inverse head and shoulders pattern.
- Bulls may face resistance at the 50-day SMA of $114,700, while $110,000 serves as a key level to beat for the bears.
This is a daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
A softer-than-expected U.S. PPI has pushed Bitcoin past $113,600, confirming the bullish inverse head and shoulders pattern highlighted earlier this week.
The breakout signal indicates the end of a recent decline from record highs above $124,000, signaling a return to the broader upward trend. Analysts suggest that using the measured move technique could see Bitcoin approach nearly $120,000, with support from the ascending simple moving averages. The MACD histogram’s positive shift confirms rising market sentiment.
On the upside, bulls may encounter resistance near the crucial 50-day SMA, while bears must challenge the recent higher low at around $110,000.
