Bitcoin price analysis: Inverted head-and-shoulder pattern breakout lingers

Bitcoin is seen trading in the green on Friday, the second day of November 2018. The asset is up 0.25% on the day following a bullish move that has touched $6,380 while heading to $6,400. In addition to that, there was a break above the short-term bearish trendline from the declines on Monday.

Elsewhere in the crypto market, a recent published report titled “Millennials With Money” has found that this generation is very open to digital assets and the underlying blockchain technology. This group of Citizens is very special and makes up over 25% of the population of the U.S. They were born during the digital age and have faced both the harsh economic realities and prosperity.

The report, published by Edelman in October says that Millennials have a healthy appetite for risk besides a whopping 61% of them utilize the services of peer-to-peer payment applications. Among the surveyed 25% already own virtual currencies while 31% have interest in digital assets. The deal breaker is that 74% of them believe that tech innovations such as the blockchain will disrupt financial services in the world.

Bitcoin price technical picture

In the meantime, Bitcoin has formed an inverted head-and-shoulder pattern with a breakout move impending towards $6,400 (broken support). There was a correction from the losses witnessed earlier in the week but BTC/USD upside was capped at $6,330. Faint corrections with the highs on Wednesday found a support at $6,290.

The reaction to the inverted head-and-shoulder pattern has broken above the moving average and tested the resistance at $6,380. The 100 SMA is holding tight at the moment while technical indicators show strong buy signals during the Asian trading hours. The MACD at 16.84 is a viable signal for the bulls while the RSI has retracted from the overbought to show that the bears are present as well. The battle for the bulls is to take the price above $6,400 and preferably establish a higher support.