BTCUSD - Double Bottom & Near Term Perspective
Good day, fellow traders!
Bitcoin has formed a Double Bottom Reversal following a violent selloff that drove price down to 5755 on Poloniex yesterday.
At present, price is trading above 6200 and moving upward at a steady pace. In the 4-hour chart, bearish pressure continues to push the 100 EMA further down from the 200 EMA that is also declining. This indicates that Bitcoin is about to face strong resistance near the 6666 price level.
Given the downswing EMAs are stacked near that level, expect price to retrace south to find more buyers. This will be a defining moment for Bitcoin as in order for the Double Bottom Reversal to play out, it is imperative for the bulls to form a lower high from the baseline support at 5755. Failure could trigger more selloff and haul price down to the next psychological support level at 5000.
On the contrary, a lower high above 5755 will signal the return of bullish momentum to Bitcoin. Expect a powerful upward thrust to retest the 6800 level (61.8% Fib level). A breakout from this level will propel price to the next psychological resistance level at 7000, where the 200 EMA resides, followed by the next key resistance level at 7430.
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Good luck and happy trading!
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Buy me coffee or a steak dinner:
BTC: 1GG7CwY3zqdCYqQz1ZG9PHyoxCGGrQu5pb
BCH: qznk2nnuppn0xszpmx0ruvfzlh7z5ux8r527d05k3f
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Please note that everything (key levels, timing etc.) in this chart is calculated based on a variety of trading methods and indicators used. The reason you don’t see them visible is because I have purposely removed them to keep this chart clean and easier to comprehend.
Bitcoin has formed a Double Bottom Reversal following a violent selloff that drove price down to 5755 on Poloniex yesterday.
At present, price is trading above 6200 and moving upward at a steady pace. In the 4-hour chart, bearish pressure continues to push the 100 EMA further down from the 200 EMA that is also declining. This indicates that Bitcoin is about to face strong resistance near the 6666 price level.
Given the downswing EMAs are stacked near that level, expect price to retrace south to find more buyers. This will be a defining moment for Bitcoin as in order for the Double Bottom Reversal to play out, it is imperative for the bulls to form a lower high from the baseline support at 5755. Failure could trigger more selloff and haul price down to the next psychological support level at 5000.
On the contrary, a lower high above 5755 will signal the return of bullish momentum to Bitcoin. Expect a powerful upward thrust to retest the 6800 level (61.8% Fib level). A breakout from this level will propel price to the next psychological resistance level at 7000, where the 200 EMA resides, followed by the next key resistance level at 7430.
Please LIKE this chart to encourage me to contribute more on TradingView and push this post to reach more people.
Good luck and happy trading!
---------------------------
Buy me coffee or a steak dinner:
BTC: 1GG7CwY3zqdCYqQz1ZG9PHyoxCGGrQu5pb
BCH: qznk2nnuppn0xszpmx0ruvfzlh7z5ux8r527d05k3f
---------------------------
Please note that everything (key levels, timing etc.) in this chart is calculated based on a variety of trading methods and indicators used. The reason you don’t see them visible is because I have purposely removed them to keep this chart clean and easier to comprehend.
Comment:
Many thanks to fellow trader, matgavaghan, for his keen eye and pointing out my typo error in both my chart and description. The "lower high" mentioned in this post was meant to be "HIGHER LOW".
Comment:
Here is a quick update. Price is moving consistently with projected trend this evening. Momentum is healthy and the 6400 trend line resistance should not pose too much trouble for buyers to overcome. We should be seeing 6600 soon.
Comment:
Price shot up to 6650 as soon as breaking above the 6400 trend line resistance. Now let us see if the bulls can defend the 6000 level to give Bitcoin that higher low it needs for its bullish continuation. Good luck, everyone!
Comment:
Guys, we are on to a great setup here. All we need is patience and there is never a better time to cultivate one's patience than now. If you don't know what setup I am talking about, dm me.
Comment:
Here is a quick update on Bitcoin:
As expected, all efforts to break the 6666 resistance level have proved futile. As a result, a double top was formed around 6600 which could take price down to the higher low region near 6000 if materialized, a downward move that was anticipated 3 days ago in this main forecast.
Recent price action showed us that the bulls were dominant over the trend but whether the 6000 level could be defended to form a higher low remains to be seen. Fortunately, at C.EZ, we already have a pro trade setup that is ready to kick in two ways.
As expected, all efforts to break the 6666 resistance level have proved futile. As a result, a double top was formed around 6600 which could take price down to the higher low region near 6000 if materialized, a downward move that was anticipated 3 days ago in this main forecast.
