BITCOIN formed an Inverse H&S. Is this a reversal sign?

Even though the title focuses on the Inverse Head & Shoulders pattern that has been formed, I will make this a multi time-frame analysis as there are various important developments we need to look into and consider for Bitcoin's trend.


** Inverse Head & Shoulders on 4H **
The main chart is on the 4H time-frame where the Inverse Head & Shoulders (IH&S) is most clear. This formation is typically a bullish reversal pattern, the opposite of a Head & Shoulders. In doing so, the price broke above the 2-week Lower Highs zone (red) as well as the 4H MA50 (blue trend-line), which is currently being tested as a Support.


** Golden Cross on 1H **
Can the Right Shoulder break and push the price upwards? A thorough examination on the 1H time-frame (see chart below) shows that BTC just formed a Golden Cross (1H MA50 (blue trend-line) crossing above the 1H MA200 (orange trend-line)). This is technically a bullish sign and as you can see the last three 1H Golden Crosses all delivered a Higher High.



** Double Bottom on 1D but MA200 resisting **
The 1D time-frame gives a long-term picture (see chart below). If last week's formation is a Double Bottom, it gives more value to the fact that the 1W MA50 (yellow trend-line) held and continues to support. At the same time though the 1D MA200 (orange trend-line) continues to exercise Resistance pressure as BTCUSD hasn't closed a 1D candle above it for 6 straight days. However, the RSI is on Higher Highs (Bullish Divergence) an indicator that probably the selling pressure is getting weaker, while the LMACD prepares a Bullish Cross.



What do you think will happen next? Will the 1H Golden Cross break the IH&S upwards or will the Double Bottom break and test the critical 1W MA50 level? Feel free to share your work and let me know in the comments section!


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