With Bitcoin at 24k, This Price Level is key for Momentum

Bitcoin gathered plenty of potential energy during the weekend, and the price was now propelled to old highs. The BTC value was pulled out of the support at $22,897 as the investors recovered from Friday’s robust job reports.

The upwards momentum has been carried on to the weekday as the largest cryptocurrency by market capitalization was trading at $24,142 at press time.

Bitcoin Price above Head and Shoulders

Source: TradingView

The above chart indicated the formation of an inverse head and shoulders pattern. As the price stumbled at $22,897, it formed the first shoulder of the pattern, and a further drop to $22,410 gave rise to its head. Similarly, a sudden push from the investors at a low price of Bitcoin saved the asset from dropping further, and a neckline was visible at $23,460.

This inverse H&S pattern created a bullish bias in the market, and the value of Bitcoin is suspected to rise at least 5% from the breakout.

Crucial Price Points:

Breakout– $23,460
Confirmation of a bullish move– $23,645.95
Upwards Price Limit– $24,686.30
Expected % profit– 5.13%

However, as the price approached immediate resistance at $24,196, the BTC price needed to cross this point. If we zoom out, it can be seen that this level has been tested twice already, which could be a make-or-break situation for Bitcoin.

Once BTC surpasses the resistance, it could be a smooth sail to $24,686. Interestingly, $24,686 was also the supply zone meaning the traders could be tempted to sell at this level. Since the value of bitcoin witnessed a free fall from $28,000 to $20,000 in June, there was no significant support under $24,686. Therefore, selling pressure could push BTC back to $24,196 in the longer term.