FX.co ★ Bitcoin pulls back after reaching bullish pattern target

Bitcoin reached new all time highs the past weekend and has also reached our inverted head and shoulders target just above $60,000. In our past analysis we also given $61,500 as a short-term target for BTC/USD but we also warned bulls to be cautious of an imminent pull back.

Blue line - support

BTC/USD remains in a bullish trend as price continues making higher highs and higher lows. Support by the blue trend line is found at $50,800. Bulls do not want to see price break below this level. Bulls were warned that a new higher high in price would most probably be followed by a lower high in the RSI and thus providing another bearish divergence warning signal. Price broke out of the short-term bullish channel and is vulnerable to a pull back towards $50,000-$52,000.