Bitcoin's Double Bottom Could Take It To $6800
Updated
The BTC price is trading in a short-term range between $4400-$5600. On March 13 and 16, the BTC price made a double bottom near $4600. The double bottom is considered a bullish reversal pattern. However, it was not entirely textbook.
The first bottom was characterised by a very long lower wick that reached a low of $3782 (depending on the exchange). However, the price reached a close at around $4600.
The second bottom was cleaner, since the price did not break down below the range support.
The pattern was combined with bullish divergence in the RSI, which completed a failure swing bottom afterwards. This indicates that the price will continue moving upwards. This would be confirmed by a flip of the $5600 level as support. This would also cause the RSI to move above 50, another bullish sign.
A movement that travels the entire height of the pattern would take the price all the way to $6800.
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The first bottom was characterised by a very long lower wick that reached a low of $3782 (depending on the exchange). However, the price reached a close at around $4600.
The second bottom was cleaner, since the price did not break down below the range support.
The pattern was combined with bullish divergence in the RSI, which completed a failure swing bottom afterwards. This indicates that the price will continue moving upwards. This would be confirmed by a flip of the $5600 level as support. This would also cause the RSI to move above 50, another bullish sign.
A movement that travels the entire height of the pattern would take the price all the way to $6800.
Please leave a LIKE if you enjoyed the analysis.
Note
While the movement transpired slightly slower than expected, the price has begun the first upward wave.Note
Continuing this in my other idea:
Trade closed: target reached
Trade closed, target reached.
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