Has BTCUSD bottomed?
BTCUSD has reached our target of $6,600 from our last analysis and is now bouncing $1,000 higher. The area of support at $6,600 has been tested and so far respected. This an early reversal sign.
Red lines - bullish wedge patternBTCUSD continues to trade inside the downward sloping wedge pattern. Price has reached the lower wedge boundary as expected and is now moving above $7,500. Bulls need to see price break out and above the upper wedge pattern boundary. Resistance therefore is at $8,700 area.
On a weekly basis price has reached the Ichimoku cloud after breaking above it. This back test is something normal and we usually see such a back test after a Kumo breakout. Bulls now want to see price start a new move higher making higher highs and higher lows. Bulls need to break above the recent high at $9,920 area in order to increase chances of continuing the up trend. So far the weekly candle is bouncing nicely above the Kumo (cloud). Bulls need to hold price above this week's low.