Published 19 hours ago
The Bitcoin technical chart shows the formation of a double bottom pattern in the weekly time frame chart. The base support for this pattern is at $19000 as the price has rebounded twice from this level in the past three months. However, can the current sell-off offset the near-term future goals of Bitcoin holders?
Key points
- The BTC price check buyer’s commitment at $20600 support
- The Weekly chart shows a bearish crossover of 50 and 100 EMAs
- The intraday trading volume in Bitcoin is $34.6 Billion, indicating a 10.5% loss
Source-Tradingview
The double bottom pattern is often found in the market bottom and initiates a significant recovery if executed properly. Furthermore, the Bitcoin price currently trades at the $21028 mark, but under the influence of this pattern, it should rally to the neckline resistance of $25000.
A bullish breakout from this neckline resistance is crucial for coin holders as it will signal an early sign of trend reversal. The interest traders entering this trade could capture a rally to the $29300-$30000 mark.
Technical indicator in Weekly chart
EMAs: the 20 and 200 EMA wavering at the $25000 neckline make it a high area interest(AOI). These crucial technical levels accumulated at the same level suggest the price action at this mark will significantly influence Bitcoin’s future prices.
RSI: a bullish divergence in the RSI slope bolsters the completion of the double bottom pattern.
Can $20800 Support Prevent Further Downfall?
Source-Tradingview
Today, Bitcoin faces sudden selling pressure as the fresh released consumer price Index(CPI) signals an 8.3% YoY inflation. Moreover, after this unfavorable CPI data, the interest rate hike of 1% seems likely.
As a result, the Bitcoin price is 6.6% down today and currently trades at the $20903 mark. However, the volume activity is low in comparison to the last six days of recovery of the Bitcoin price. Moreover, the coin price hit the combined support of $20800-$20600 and 20-day EMA, which should assist the buyers in fighting back.
Thus, if the Bitcoin price sustains above this support, the above bullish theory should do its work.
However, today’s candle closing is important, and a breakdown below the $20600 mark will pull the prices back to the $18830 mark.
- Resistance level- $22550 and $25000
- Support level- $20800 and $18830
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/weekly-analysis-hints-bitcoin-price-could-reach-25000-in-near-future/