RATE Group | Bitcoin’s double bottom close to failing; sub-$6,000 levels on the horizon
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Bitcoin’s double bottom close to failing; sub-$6,000 levels on the horizon

01 Jan Bitcoin’s double bottom close to failing; sub-$6,000 levels on the horizon

Posted at 13:41h in Bitcoin News by

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Bitcoin’s price has been under the $7,600 range for over a month now. Even with 3 major retests of the resistance at $7,660, Bitcoin’s price hasn’t managed to breach it. With the formation of a double bottom in a medium time frame, this was supposed to change. However, it hasn’t so far.

BTC 4 Hour Chart

Bitcoin's double bottom close to failing; sub-$6,000 levels on the horizon

Source: BTC/USD  on TradingView

The double bottom is a bullish pattern, provided the price breaks above the neckline with sufficient volume to continue the bullish momentum. Although there is a decreasing volume trend, there hasn’t been any breach above the neckline. As Bitcoin fails to reconquer the strong resistance at $7,600, its collapse is also strong support at $7,236. Moreover, the VPVR indicator showed a point of contact at this support [$7,236].

Perhaps, the reason why Bitcoin would fail to fully evolve into a double bottom pattern would be a major overhead resistance. The 2-year daily moving average has not been breached since 26 September. For…

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