Bitcoin has found support at the neckline of an inverted head and shoulders pattern, indicating a bullish outlook for the cryptocurrency. The recent price action shows that the bulls are still in control of the market, as the neckline resists the downtrend.
From a fundamental perspective, Bitcoin remains bullish, especially as the US dollar continues its bearish trend. While the dollar has shown some strength recently, its overall move has been inconclusive, as seen by 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 is not stopping but skipping a rate hike in June. However, other panellists, such as the Governor of the Bank of England and the President of the European Central Bank, also expressed hawkish sentiment. If investors perceive other central banks as more hawkish than the Fed, US dollar weakness could dominate the market during the summer months.
The burning question for crypto investors is whether Bitcoin bottoms out by the end of 2022. Since December 2022 low price action provides hope for a bull run and indicates that a major low may have been set. The inverted head and shoulders pattern further supports the bullish case, as the market retested the neckline and was rejected, suggesting that bulls still have control.
Notably, the Bitcoin price is currently near this year’s high, and there is no significant resistance to the $48k level, which marks the 2022 high. The market appears to be gathering momentum to break higher, creating anticipation for the potential for further gains.
Overall, the Bitcoin price is showing promising signs, with technical patterns and fundamental factors supporting the upside. As the market continues to develop, investors will be closely monitoring the next Bitcoin price movement and assessing its potential for further growth