The Federal Reserve made its decision this week, increasing the funds rate by 25 basis points. In the wake of this news, Bitcoin surged and found resistance at the $29,000 mark. Now, traders are wondering whether the digital currency will continue its upward trend or if a pullback to $24,000 is in the cards.
Technical analysts have noticed the formation of an inverse head and shoulders pattern in the last six months, with the 2023 rally being part of the market’s attempt to reverse and head to the measured move. This pattern usually involves a retest of the neckline, which is currently at $24,000. The outcome of this retest could be a major indicator of which direction the market will take.
Those who have invested in Bitcoin may want to consider taking partial profits and setting a break-even stop to observe the effect of the neckline retest. If the support doesn’t hold, there could be further losses in the future.