BTC/USD Update - Slowly Approaching Critical Resistance

BTCUSD - Weekly

BTCUSD has slowly been approaching the historic $6,000 mark. Since the huge spring up to $5,000 back in the beginning of April, we have been gaining steady bullish momentum and price action exists well above the 20 SMA. The Daily chart is more telling, so let's take a look at that.

BTCUSD - Daily

One of the most common bearish calls I have seen lately is that BTC is printing a Head & Shoulders pattern here. However, a higher low was formed, giving a weak neckline. It is worth noting that BTC has gained bearish momentum which causes some confusion as to what BTC will do in the short term. The previous bearish momentum was insignificant and still yielded upward price action.

Price action established $5000 as a strong support and recently broke the mid $5300's resistance. A retest of this as support would prove bullish as it failed to do so several days ago. Next target is to break the previous high of the mid $5600's. The 20 SMA is closely following price action as well.