Bitcoin (BTC/USD) broke below the $60,000 market cap today for the first time since September 18. The first headlines hit the market calling for more downside. We highly doubt that as not only did the price form the first Higher High on September 27 in 6 months, but more importantly the uptrend since the August 5 bottom is supported by the Lower Low trendline.
Additionally, the 1-day MA50 (blue trendline) may have been broken, but as long as the price holds the 1-week MA50 (red trendline), which has held twice on August 5 and September 6, the possibility of the price breaking above the 7-month lower high trendline is very high.
In fact, the pattern since the August 5 bottom looks to be an Inverse Head and Shoulders (IH&S). The standard technical target in such cases is the 2.0 Fibonacci extension level, which gives us a price of $80,000. As long as the 1W MA50 holds, this is the most likely scenario in our opinion.
