Bitcoin buyers focus on psychological $4,000: Inverted double-head and shoulders pattern spotted

Bitcoin is on the rise for the third day this week. However, the trading yesterday saw it record mild gains after sliding towards the short-term support at $3,866.588. The crypto market is generally in the green after the bulls revived their journey of breaking barriers to the upside.

At the moment, Bitcoin is changing hands at $3,936.3. It has corrected upwards from the opening value at $3,890.11. This means that Bitcoin has added 1.19% on its value today. Since the beginning of the week, the trend has been in favor of the bulls with Bitcoin trading above $4,000 on some exchanges. However, according to the charts provided by FXStreet, BTC/USD corrected to highs around $3,971.58 before trimming the gains.

Meanwhile, the founder of Tesla and SpaceX, Elon Musk in a recent interview said that cryptocurrencies are a better transfer of value than paper money. He added that Bitcoin’s structure is “quite brilliant”.

Bitcoin is still trading within a bear range between $3,900 and $4,000. A correction must be made above $4,000 (supply zone) in order for the buyers to attack higher levels towards $4,100 and $4,200. The good thing is, technical levels as shown by the applied indicators are still positive to show that the bulls still have the power to push for a higher retracement in the short-term. The correction to $4,000 will complete the inverted double head and shoulders pattern. Reaction to this pattern could see Bitcoin ignite more gains towards $4,500.