BITCOIN - Double Bottom, Wait For a Breakout!!
Updated
Possibly, the price has printed a bullish chart pattern called Double Bottom on the $7,500.
Possibly? Because the pattern gets triggered after the neckline break. Currently, the neckline is around $7,860 and if the 1H candle gets a close above the neckline then the chart pattern is valid. At the moment when I write this, the price is above the neckline BUT we need a candle CLOSE!
Yesterday, the price made a breakout downwards from the Ascending Triangle and currently it has started to print something similar which is just a little bit bigger but whatever it is the resistance stays still into the same area - $7,860. To make those patterns valid then we need at least a 1H candle close above the mentioned resistance level and as always, more secure would be a 4H candle close confirmation.
Because we have lower lows and lower highs then the next selling area should stay between $8,115-$8,350. Wait for bearish price action from the gray box. Price action = smaller timeframes chart pattern breakouts, bearish candlestick patterns on the 1H+ timeframes and here is definitely the saying - bigger is better.
In the gray selling area are some other criteria which will end this wave:
1. Fibonacci levels 50% & 62%
2. The trendline should act as a resistance level
3. Previously worked support and resistance area
4. Strong area (areas without candle close inside of it)
5. Double Bottom chart pattern target.
If the price reaches into the mentioned selling area then I make updates and notify about the bearish price actions.
The double bottom has formed around $7,500 because there are some pretty important price action criteria and also there is currently the 4H chart EMA200:
If the price can't break above the resistance at $7,860 then there could be a pretty good selling opportunity after the 4H candle close below the $7,500, below the 200EMA.
Feel free to support my effort by hitting the "LIKE", it is my only fee from You!
Best regards!
Possibly? Because the pattern gets triggered after the neckline break. Currently, the neckline is around $7,860 and if the 1H candle gets a close above the neckline then the chart pattern is valid. At the moment when I write this, the price is above the neckline BUT we need a candle CLOSE!
Yesterday, the price made a breakout downwards from the Ascending Triangle and currently it has started to print something similar which is just a little bit bigger but whatever it is the resistance stays still into the same area - $7,860. To make those patterns valid then we need at least a 1H candle close above the mentioned resistance level and as always, more secure would be a 4H candle close confirmation.
Because we have lower lows and lower highs then the next selling area should stay between $8,115-$8,350. Wait for bearish price action from the gray box. Price action = smaller timeframes chart pattern breakouts, bearish candlestick patterns on the 1H+ timeframes and here is definitely the saying - bigger is better.
In the gray selling area are some other criteria which will end this wave:
1. Fibonacci levels 50% & 62%
2. The trendline should act as a resistance level
3. Previously worked support and resistance area
4. Strong area (areas without candle close inside of it)
5. Double Bottom chart pattern target.
If the price reaches into the mentioned selling area then I make updates and notify about the bearish price actions.
The double bottom has formed around $7,500 because there are some pretty important price action criteria and also there is currently the 4H chart EMA200:
If the price can't break above the resistance at $7,860 then there could be a pretty good selling opportunity after the 4H candle close below the $7,500, below the 200EMA.
Feel free to support my effort by hitting the "LIKE", it is my only fee from You!
Best regards!
Note
...and as always, when I start to write a post then the price has started to make moves, as you see on the 4H chart picture, the price is still under the neckline and everything is calm, Grrhhhh....:DHave a great day and if you appreciate my work then do not forget to support me!
Best regards,
Vaido
Note
The breakout has confirmed, the Double Bottom chart pattern is valid, 45 min to go to get 4H candle confirmation but let's see what we get from here, looking good!Note
RIPPLE idea post: Important trading levels!
Have a great weekend!
Note
New BTC analysis, pretty big bearish signs from the higher timeframes:
All the best!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.