BTC/USD Technical Analysis: Perfect textbook technical pattern is very close to being in play

Bitcoin trades 2.26% higher today as crypto sentiment improves.
A close above 7,400 will bring the inverse head and shoulders into play.

Rajan Dhall, MSTA FX Daily

BTC/USD 4-Hour Chart

The head and shoulders pattern is one of the most famous in technical analysis.

Now it seems on the 4-hour chart BTC/USD is forming a perfect one.

If the price breaks and closed above 7,400 that will trigger a potential upside target of between 8K and 8,200.

With the head and shoulders pattern the target is based on the pattern length.

And the 11.87% pattern length would take it slightly higher than projected on the chart to 8,257 but as there is a consolidation zone close the target has been adapted.

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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