Earlier in the week, I noted that Bitcoin Poised to Test the Highs on the Year. Indeed, price continued to rally since that previous post. Bitcoin (BTCUSD) 4H Chart 7/7 (click to enlarge)The 4H chart shows a persistent uptrend as price makes higher highs and higher lows. Price is also holding above the cluster of 200-, 100- and 50-period simple moving averages in the 4H chart for the most part. The RSI is also holding above 40 for the most part, and has been pushing above 70. It is reasonable to anticipate a continuation of this pattern through the second half of this week. Since the end of the 7/6 session and throughout the 7/7 session, we saw a dip as BTCUSD retreated before claiming 280. Now, as price approaches the 260-265 area, we should once again anticipate another bullish swing. Watch for the RSI to approach 40 and turn back up for an indication of the maintenance of bullish momentum. Bitcoin (BTCUSD) 1H Chart 7/7 (click to enlarge)In the 1H Chart, we can see that BTCUSD has completed a head and shoulders pattern and is indeed in a near-term correction. A head and shoulders pattern does not necessarily mean a reversal. It might not even lead to any significant correction. If price falls below 260, then we might see some more short-term bearish correction. However, if price instead climbs back above 270, it would clear a near-term falling trendline and the 50-hour simple moving average. This would suggest a bullish continuation towards the 280 handle, with risk of continuing the medium-term bullish mode towards the 310-320 highs on the year.