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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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.