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Bitcoin falls to $ 29,000 but forms a double bottom

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Double Bottom Pattern for Cryptocurrency [Trading Tip]

Bitcoin falls to $ 29,000 but forms a double bottom

Bitcoin falls to $ 29,000 but forms a double bottom
CONTENT

  • Resistance is at $ 33,800 and support is at $ 29,000..

  • BTC rate could have formed a double bottom.

  • The price is likely trading in wave C of the A-B-C correction.

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Bitcoin (BTC) slipped significantly on January 27. Price formed a double bottom and bounced off $ 29,000 support.

Bitcoin is expected to resume gains in the direction of the $ 33,800 resistance area or even move higher.

Bitcoin bounced off support

Bitcoin falls to $ 29,000 but forms a double bottom

Bitcoin (BTC) rebounded on January 25 from the $ 33,800 resistance area and began to decline, accelerating the rate of decline on January 27. Price reached a low of $ 29,241 and bounced off of it.

The $ 29,000 level is extremely important as it represents the 0.5 Fibo level of the retracement of the entire bullish move. Bitcoin formed long bottom wicks each time it tested this mark. However, each time the next wicks and subsequent rebounds became weaker and weaker. This indicates a fading momentum.

In this regard, today’s closing price becomes especially important. A weak rebound, which will not be able to absorb yesterday’s candlestick, will be a pronounced signal of a weakening in price. If the BTC rate moves higher, the nearest area of ​​resistance will meet it at $ 33,800 and $ 36,950.

However, technical indicators on the daily chart suggest that the trend remains bearish.

Do you believe in the continued bullish potential of BTC? Share your opinion in the comments and join the discussion in our Telegram channel!

MTC schedule. Source: TradingView

Double base

On the 6-hour chart, you can see a potential double bottom, which is accompanied by bullish divergence signals on the RSI and MACD.

The first bottom is characterized by a bullish hammer and the second is a bullish engulfing candle. Both of these signals are bullish..

Bitcoin falls to $ 29,000 but forms a double bottom

Indicators of this timeframe support the probability of a rebound.

Schedule MTC. Source: TradingView

The same can be said about the situation on the 2-hour timeframe..

BTC has made a bullish breakout of the descending resistance line and is now trying to turn it into support, along with a horizontal support area of ​​$ 31,000.

The MACD indicator is almost in the green zone. In this regard, the BTC rate may continue to rise in the direction of $ 33,800 and, possibly, $ 36,900.

MTC schedule. Source: TradingView

Wave analysis

Wave analysis results suggest Bitcoin is in wave C of A-B-C retracement (orange), which could end in the $ 39 150- $ 40 108 range.

Sub-wave analysis (black) of wave C suggests that we are dealing with a leading diagonal, which may end at $ 39,276, which is in line with a longer-term forecast..

However, this is a very short-term timeframe, so it is highly speculative. In contrast to the forecasts marked in black on the chart, the price reaching the $ 39 150- $ 40 108 range seems more likely.

Bitcoin falls to $ 29,000 but forms a double bottom

MTC schedule. Source: TradingView

Conclusion

Thus, the bitcoin rate is expected to bounce and reach the resistance area of ​​$ 33,800. Potentially, the pair can break it and head towards the target range of $ 39 150- $ 40 108.

You can read the previous Bitcoin forecast here.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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