There is no doubt that bitcoin has gained back some of its momentum over the last couple of weeks, There is a chance that bitcoin could rally, this chance has started after a successful head and shoulders pattern formed on a critical support level. The price seems to have broken the resistance level of the descending triangle, this is a good sign but we still need confirmation that the price has enough momentum to make more bullish gains. A good confirmation would be for the price to retest the broken resistance level and bounce. If this happens then it is very likely we see massive bullish pushes in the market as we will see a rise in the volume traded. There is just one thing stopping bitcoin from rallying just yet, this is a rising support level, this support level seems to be strong and it looks like the price has broken below this support level and is now testing it, if this level holds it would be acting as a level of resistance, this would mean we would se bearish moves in the market over the coming weeks. I will update this post to keep everyone updated with this idea.
It looks like the price has been unsuccessful in breaking this resistance level (previously broken support level (red line)). If the price moves down from here it is very likely to test the support level (which is the previously broken resistance level of the triangle (black line)). I will update this post once the price moves down to the support level, or if i spot any signals.