Bitcoin's Road Back to $7K

Having defended $6,000 last week, bitcoin appears to be building momentum for a price rise, but nearby technical hurdles still present a formidable challenge.

The level is shaping up to be a make-or-break mark, one that could reveal if a classic trend reversal pattern, known as the inverse head-and-shoulders, will take effect.

Bitcoin has failed to absorb offers around $6,850 several times since June 11th, establishing it as a key technical hurdle.

While bulls would have liked to breach resistance on an earlier attempt, the consistent rejection is allowing for an inverse head and shoulders reversal pattern to take form.

A convincing break would confirm the inverse head and shoulder reversal, shifting short-term trend into bullish favor.

Bitcoin would then likely attack long-term trendline resistance located at $7,050, as seen in the chart below.

It's no secret that bitcoin has been in a commanding bear grip since reaching its all-time high of $19,891 in December of 2017, a picture painted by the long-term downtrend line seen in the chart below.

If the inverse head-and-shoulders pattern takes form, the trendline of resistance would likely be tested in the following hours or days.

A convincing break and close above of the current downtrend would carry strong bullish implications surely to shift the intermediate term trend into bullish favor - opening the doors for a move to $7,900.

An approval would be a historic event, as it would open the doors for much awaited institutional investment - a potential inflow of funds bitcoin has never seen before.