Bitcoin\u2019s uptrend in the time since it tapped lows of $6,400 has been unwavering, and BTC\u2019s bulls have been able to successfully garner enough buying pressure to push the cryptocurrency up towards its key resistance levels that exist within the upper-$7,000 region.<\/p>\n
It is important to note that BTC is currently on the cusp of validating an overwhelmingly bullish technical formation, but in order for this to spark a massive rally, bulls need to push the crypto above one key level.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading up roughly 1% at its current price<\/a> of $7,600, which marks a notable climb from its daily lows of under $7,400 that were set yesterday morning when bears attempted to garner enough selling pressure to halt the ongoing rally.<\/p>\n It is imperative to note that the short-term downtrend that ensued after BTC faced an influx of selling pressure yesterday was short-lived and was ultimately followed by a strong bounce that marked a continuation of its uptrend.<\/p>\n The price region that Bitcoin is currently trading within is where the crypto had faced multiple swift rejections at over the past few weeks, signaling that this is an area of resistance.<\/p>\n Importantly, over the past few weeks Bitcoin has been forming a bullish inverse head and shoulders formation, but Scott Melker \u2013 a prominent analyst who primarily focuses on Bitcoin and other cryptocurrencies \u2013 explained in a tweet that this bullish formation will not be valid until BTC breaks firmly above the mid-$7,600 region.<\/p>\n \u201c$BTC 4 days later and price has tested the neckline (pink) of the inverse head and shoulders. I see people drawing a horizontal neckline – not how this works. The neckline is determined by connecting the two swing highs surrounding the head – a descending line in this case,\u201d he noted while pointing to the chart seen below.<\/p><\/blockquote>\n $BTC<\/a><\/p>\n 4 days later and price has tested the neckline (pink) of the inverse head and shoulders. I see people drawing a horizontal neckline – not how this works. The neckline is determined by connecting the two swing highs surrounding the head – a descending line in this case. pic.twitter.com\/6xOG9CUdab<\/a><\/p>\n — The Wolf Of All Streets (@scottmelker) January 6, 2020<\/a><\/p><\/blockquote>\n\n