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Bitcoin [BTC] Price Analysis: Double-Bottom Pattern Awaiting Confirmation

bitcoin-btc-price-analysis-double-bottom-pattern-awaiting-confirmation

Bitcoin is trading with a slight uptrend as it broke above the $4100 mark. The price of Bitcoin (BTC) at 8: 00 hours UTC on April 1, 2019, is trading at $4134. It is trading 0.9% higher on a daily scale.

Double-Bottom Pattern Close to Completion

The above chart resembles the double bottom formation identical to the Adam and eve Bottom pattern. A narrow valley with a pointed trough followed but another valley but on a broader scale. The pattern usually develops over a period of 2 months.

BTC/USD 1D Chart from Bitfinex (Tradingview)

While the two valleys have formed the bottom, the pattern isn’t complete yet at as ‘the confirmation’ for the bottoming is still left.

For the confirmation, the traders must wait until price to closes above the peak between the valleys. Bitcoin, however, seems to be trading near the valley peak and an extended trade along the same range could result is a downside.

Nevertheless, a close above $4331 would complete the bottom pattern. The completion of the pattern above the peak of the valley would confirm the double bottom on Bitcoin paving the way for the bulls to arrive.

The volume is comparable with the rest of the month. Hence, low volume characteristic might also subsidize the reversal action.

The RSI index on the daily scale is 63.5 which is slightly towards the over-bought region. However, the RSI on one week is 43.6, more inclined towards over-sold.

The hourly MACD is, however, showing positive signs of a bullish signal.

 

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