Bitcoin             has a possible inverse head and shoulder pattern forming. The left shoulder and head are already formed, just needs the right shoulder to reach the neckline and then a hopeful breakout with volume .

The biggest problem i foresee for the bulls are the 55EMA and horizontal resistance. Currently the 1D 55EMA is sitting right on the resistance of $6870, this is also currently the top of the bollinger band and neckline. If the bulls manage to break through all this resistance with good volume , one cannot deny at least in the short term, a market reversal is occuring.

Ideally you’d want to see a lower volume during the decline of the head (for an iH&S) compared to the left shoulder followed by an increase in volume on the advance back up to signify increased buying pressure rather than relaxed selling pressure. In this case, we got neither, as the head had fairly equal volume on the way down relative to the left shoulder and lower volume on the way back up than down. At least the right shoulder is low volume though.

I do believe though that many stops will be placed just above this resistance level , and if the bulls do break it we may see a domino effect of people buying BTC             . The log support at 7. 25k             or so will likely have turned to resistance so would play long to around that area, a great profit.

TDLR: breaking $6870 with volume is very bullish , and first target is $7200. If the resistance proves too much, good short opportunity may come into play.