Bitcoin Price Rebounds 11% From Low amid ‘Textbook’ Inverse Head & Shoulders Pattern

  • Bitcoin price touches intraday high of $7,668 Wednesday.
  • Earlier in the day, BTC/USD bottomed at $6,847.72, a six-month low.
  • Cryptocurrency markets recover north of $200 billion.

Bitcoin’s price reclaimed the $7,500 handle on Wednesday after plunging to its lowest level in over six months.

BTC/USD Stages Relief Rally

Wednesday’s roller coaster session saw bitcoin’s price breach $6,900 for the first time in over six months. The largest cryptocurrency would eventually find bottom at $6,847.72 on Bitstamp.

A quick relief rally would ensue, sending BTC/USD to a high of $7,668 for a trough-to-peak gain of 11.3%. The largest cryptocurrency was last spotted around $7,617, having gained 6.2% for the day.

Bitcoin price update
Bitcoin rebounds more than 11% from intraday low. | Chart: TradingView

Bitcoin has bounced off extreme overbought levels but remains in a descending channel that began in late October. An RSI reading of around 40 suggests further downside pressure is possible.

While it’s too early to declare a shift in sentiment, bitcoin’s price formation looks like a “textbook inverse head & shoulders,” according to Mark Yusko of Morgan Creek Capital. This formation implies that upward movement is likely once the final trough is made.

Mark Yusko twitter
Mark Yusko suggests bitcoin might be primed for take-off very soon. | Image: Twitter

Bitcoin’s price action exerted a gravitational pull on the wider cryptocurrency market, as altcoins and tokens rallied from recent lows. Cryptocurrencies recovered more than $15 billion in lost market cap, reaching a high near $206 billion, according to CoinMarketCap.

Crypto market cap
The total cryptocurrency market cap regains $200 billion handle on Wednesday. | Chart: CoinMarketCap

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