Bitcoin / U.S. Dollar -Update-
Ooooh it's sunny TODAY! While everyone was talking noise on my analysis yesterday, the inverse head and shoulders was holding strong, as price found support on the top of the pink trendline .
Looking at the four hour chart, we can see that after yesterday's breakout, BTC reversed to test and confirm the top of the channel as support. For anyone who doesn't know, this is bullish price action, that shows confirmation. What was once resistance is now support. If you recall from yesterday's analysis, I said "You can see that the 200 EMA (in purple) and the 50 EMA (in orange) are moving into the picture as well. They should add support to the top of the channel, as they converge with the pink trendline , thus increasing the likelihood of support being found." Looking at the chart today, we can see that is exactly what happened. Now, BTC is moving higher, and it is likely to test the black downtrend resistance level that was created off of the previous high. Just above there is the 61.8% retrace, so BTC may just grind higher, as it runs into some resistance levels.
You may notice that I have extended the right shoulder out a bit, to accommodate for the movement of the price action, but before the noobs get their panties in a bunch, I have to remind you that it's JUST A DRAWING. It is an approximate area through which I expect price action to move. It's not some static thing that I don't move. If the market moves slightly out of it, and the general pattern is still intact, I just adjust the drawing.
Overall, the analysis is unfolding as planned, and we're waiting for the eventual break of the neckline resistance.The recent price action in the right shoulder appears to be forming an inverted head and shoulders pattern too, but I haven't drawn it out. Right now, we have a technically confirmed breakout of the channel, and we're approaching overhead resistance. The MACD has formed a weak bullish crossover, and the volume remains light, as traders look for a bit more upside to put the final nail in this coffin. A breakout above the neckline resistance will send us up to the heavy resistance at the 50% retrace. A confirmed breakout above there will be extremely bullish , and it will put my upside target of 16,500 on the map.