Bitcoin’s Inverse Head and Shoulders–Bullish Reversal or Fakeout
2024-10-21

Summary :
Bitcoin has formed an inverse head and shoulders, a classic bullish reversal pattern. Currently, it’s retesting the neckline around $67,500. Will the retest hold and confirm the breakout, or is a deeper pullback in play?

 Chart Setup :
Inverse Head and Shoulders: Bitcoin formed an inverse head and shoulders pattern with the left shoulder around $60,000, the head near $57,500, and the right shoulder again at $60,000. The neckline sits at $67,500.
Retest of Neckline: After breaking out above the neckline, Bitcoin is now retesting this level. A successful bounce could signal continuation toward higher levels.
Volume Watch: A strong volume spike on this retest would confirm the breakout. Low volume, however, might indicate a fakeout and potential drop.

 Entry & Exit :
Bullish Case: Entry on a confirmed bounce off $67,000-$67,500, with targets around $70,000 and beyond.
Bearish Case: A failure to hold the neckline could lead to a drop back to $65,000 or lower, signaling a return to the previous downtrend.

 Conclusion :
Bitcoin is at a critical point. A successful retest of the neckline would confirm the bullish reversal and open the door to new highs. However, if the retest fails, a return to the prior downtrend is possible. Volume will be key in determining the next major move.

