Bitcoin Rallies Back: Breakdown Confirmation or Bulls Back in Control?

The Bitcoin price has come back to tag the neckline of a bearish head and shoulders pattern. Is this going to be a confirmation of the breakdown, or can the bulls negate the pattern and push the $BTC price back to the $66K horizontal resistance?

$BTC price returns to confirm head and shoulders pattern

Source: TradingView

The short-term time frame illustrates how the $BTC price has returned to the neckline of the head and shoulders pattern. As it stands, this is quite ominous. A rejection and a confirmation of the pattern looks to be the most probable outcome. If this is the case, the full measured move down would be to around $60K, which would be well below the bull market trendline and would potentially see the price carry on down to the bottom of the channel at least.

On the more optimistic side of things, previous head and shoulders patterns have failed to play out. Also, the short-term Stochastic RSI indicators are moving up, signalling upside price momentum. Will it be enough?

No major price correction yet is bullish for Bitcoin

Source: TradingView

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