After setting up a head and shoulders pattern which saw a spike down through the $8,000 level and neckline, we have seen BTCUSD brush the break of the neckline having recovered very well and finding support above the key level of $8,000.
Interestingly, a break-out pattern is now setting up after the pump from $6,000 to $8,000 with accumulation taking place and setting up for the next move.
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A breakout to the upside would target the $8,7000 with the potential to overshoot into the above consolidation zone that triggered the sell off in mid-March. If there is significant volume and Bitcoin can push past $9,200 and break the consolidation zone, it would be an extremely BULLISH signal for the medium term trend.
On the flip-side, if Bitcoin starts to weaken and a breakout to the downside unfolds, the head and shoulders pattern is likely to be realized with a projected target around $7,500.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.