FX.co ★ Bitcoin challenges major channel support

Bitcoin has pulled back from the resistance at $59,000 to $55,000 and the lower channel boundary. Price remains inside the upward sloping medium-term channel and as long as this is the case, we will continue expecting new highs. The inverted head and shoulders pattern is still valid but only gets activated if price breaks above $59,000-$60,000 neckline.

Red rectangle -neckline resistance

BTC/USD got rejected at the resistance yesterday and has pulled back towards the lower channel boundary. Bitcoin remains vulnerable to a bigger correction towards $40,000 but as long as it stays inside the bullish channel, bulls continue to have hopes. Bulls will regain full control of the trend specially if price breaks above the red rectangle resistance targeting $75,000 next.