Not only that we can see $15k for the Bitcoin price, but most likely $16k is in the cards too. How come? For one thing, Bitcoin price action remains bid. The market keeps forming higher highs and higher lows, a typical bullish formation.
Moreover, the cryptocurrency formed an inversed head and shoulders pattern. The dive in March represents the head for the pattern, then the market broke the neckline ($10k), retested it, and now is ready to go for the measured move.
A Surge in Cryptocurrency Deposits
The good news for Bitcoin continues to resurface. It started with MicroStrategy announcing an investment of over $100 million in Bitcoin. It continued with Square announcing $50 million. The PayPal news last week was responsible for a new leg higher in Bitcoin.
This week it is the Silvergate Bank. The California based bank just announced that it accepted deposits in cryptocurrency in excess of half a billion dollars. While not that high as in Q4 2017, it reflects a strong appetite for cryptocurrencies from the general public and something that keeps a bid tone behind the Bitcoin price.
Bitcoin Price Technical Analysis
A close look at the chart below reveals that the measured move (i.e., the blue line) exceeds $15k. In fact, it stretches all the way to $16k and a bit more. Therefore, any bullish trade should consider the $16k as the target.
After a head and shoulders formation, the price typically retests the neckline. While not a mandatory condition, it happens most of the time. Moreover, when it does, it is a sign that reinforces the pattern.
To make the most of this pattern, bulls may want to go long at the market and set a stop-loss order at the $10k level while targeting the $16k. While the risk-reward ratio is not that impressive, it allows traders to participate in the bullish price action.