Bitcoin has dropped below $60,000, raising concerns about further declines in the market.
Despite the dip, a bullish reversal is possible based on recent price action:
On September 27, Bitcoin registered its first Higher High in six months, indicating a potential upward trend.
The uptrend since the August 5 low remains intact, supported by a Higher Lows trend-line.
The 1D MA50 (blue trend-line) was breached, but the key level to watch is the 1W MA50 (red trend-line), which:
Has held strong twice, on August 5 and September 6.
As long as the price remains above this level, the potential for a breakout above the 7-month Lower Highs trend-line remains high.
The price movement since August 5 suggests the formation of an Inverse Head and Shoulders (IH&S) pattern, which:
Indicates a potential target of $80,000, based on the 2.0 Fibonacci extension.
The bullish scenario remains likely as long as the 1W MA50 continues to hold support.