Heads up, crypto bulls!
Is that a double bottom pattern on bitcoin or am I just seeing things?
Better keep these levels on your radar in case we see a reversal from the slide.
Bitcoin (BTC/USD): 1-hour
Bitcoin has been sliding for quite some time now, but it looks like price is having a tough time breaking through the floor around $18,500.
I’m seeing a couple of failed attempts so far, creating a double bottom pattern with the neckline just slightly below the key $20,000 level.
Are we about to see a break higher soon?If that happens, BTC/USD might be in for a climb that’s at least the same height as the reversal formation.
However, the neckline resistance just might be a bit tough to crack since it’s right around the 200 SMA dynamic inflection point. The 100 SMA is below this slower-moving MA, hinting that the ceiling is more likely to hold than to break.
At the same time, Stochastic is inching closer to the overbought region to reflect exhaustion among buyers. Turning lower would mean that sellers could take bitcoin back down to the lows… or even lower!
It’s worth noting that dollar strength has been in play over the past few days, following the FOMC rate hike and risk-off flows from Russia’s war tactics.
If you’re still trying to pick a side, just stay on the lookout for either reversal or breakout candlesticks around the $20,000 mark.
Good luck and good trading!
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