So, while the bulls may feel emboldened by a possible inverse head-and-shoulders breakout, they are cautioned against being too ambitious.
The area between $7,000 – $7,100 hosts more relevant technical hurdles that need to be penetrated in order to prove the bull case.
Interestingly, the 0.236 Fibonacci retracement from May high of $9,900 happens to be in the same area, according to Bitfinex Exchange.
Bitcoin would then likely attack long-term trendline resistance located at $7050, as seen in the chart below.
If the inverse head-and-shoulders pattern takes form, the trendline of resistance would likely be tested in the following hours or days.
Nonprofit organization PoWx has launched this week with the goal of boosting the idea behind proof of work (PoW) through more innovative algorithms. The company is seeking to decentralize Bitcoin mining and make it more accessible to consumers through a new technology that executives have dubbed “optical PoW” — a new type of hardware that utilizes a more advanced and energy-efficient form of laser technology as the cornerstone of mining.
Key Points Bitcoin price is currently consolidating around the $6,500 level against the US Dollar. The BTC/USD pair is currently attempting an upside break above a declining channel with resistance at $6,500 on the 4-hours chart (data feed from Kraken).