As the price of Bitcoin recovers, technical analysts highlight the $66,600 level as a key factor for the continuation of the upward trend. According to technical analyst Tech Charts Axel Kibara, since reaching the June lows, Bitcoin has been forming an 'inverse head and shoulders' pattern on the daily chart, which is considered a bullish signal.
Kibara stated that the resistance level of the pattern in question is around the $66,600 mark. He added that if Bitcoin strongly breaks through this level and sustains above it, the pattern will be confirmed, and the technical target could rise to $76,000.
In technical analysis, the inverse 'head and shoulders' pattern is generally considered a reversal pattern, indicating that a downtrend may be nearing its end and a potential uptrend may be beginning. The target price is usually calculated by adding the distance between the head line and the neckline of the pattern to the breakout level.
The current structure forming since early June may reinforce expectations of a possible bottom being reached in Bitcoin's decline, which started after it peaked at around $126,000 in October last year.
For market participants, the most important level in the upcoming period will be $66,600. If Bitcoin breaks through this resistance and turns it into support, a strengthening of the technical outlook is expected, and the $76,000 target will come into play. Conversely, failure to overcome this level could delay confirmation of trend formation.
*This is not investment advice.
