Over the past 50 days, BTC has been forming a massive inverse head and shoulders pattern.
We can see that in the formation of the right shoulder, BTC bounced off the green long term trend line.
2 days ago we can see that BTC has broken through the red downtrend channel and is now testing the white head and shoulders neckline. A break out of the white neckline would be a strong bullish signal. The next resistance is at 12,700. If we break through 12,700, my target is 16,000
Theres a bunch of support below: the 200 EMA and 50 EMA which have proven to be supportive, the top of the downtrend channel and the green long term trend line.
Overall the signal is bullish pending a breakout of the neckline.
