Bitcoin has found support at the neckline of an inverse head and shoulders pattern, indicating a bullish outlook for the cryptocurrency. The recent price action suggests that bulls still control the market, as the neckline rejected the downward trend.
From a fundamental perspective, Bitcoin remains bullish, especially as the US dollar continues its bearish trend. While the dollar has recently shown some strength, its overall movement is not convincing, as seen in the EUR/USD exchange rate hovering around 1.10.
Federal Reserve Chair Jerome Powell’s recent comments at the ECB Forum in Sintra confirmed that the Fed did not pause but skipped a rate hike in June. However, other panelists, such as the Bank of England’s Governor and the European Central Bank’s President, also expressed hawkish sentiments. If investors perceive other central banks as more hawkish than the Fed, the weakness of the US dollar may dominate markets during the summer months.
The burning question for crypto investors is whether Bitcoin hit bottom in late 2022. Since the December 2022 low price action provides hope for the bulls and suggests that a major bottom may have been established. An inverse head and shoulders pattern further support the bullish case, as the market retested the neckline and was rejected, indicating that bulls still have control.
Notably, Bitcoin’s current price is approaching the year’s high, and there is no significant resistance until the $48k level, which marks the 2022 high. The market seems to be gathering momentum to break higher, creating anticipation for further upside potential.
Overall, Bitcoin’s price is showing promising signs, with technical patterns and fundamental factors aligning in favor of the bulls. As the market continues to evolve, investors will closely monitor the next moves in Bitcoin’s price and assess its potential for further growth