Reversal Pattern and Breakout of Bitcoin (BTC) Price

Bitcoin price Key Highlights

• Bitcoin value staged a rally sharp enough to break past the falling trend line on the 4-hour chart.

• In addition, a tiny low double bottom has shaped on this same time-frame to signal that an uptrend is underway.

• Technical indicators, however, are suggesting that the declines may still resume.

• Bitcoin price broke past the down trend line and therefore the neckline of a small double bottom to signal a potential reversal.

Bitcoin value broke past the descending trend line and the neckline of a small double bottom to signal a potential reversal.

Technical Indicators Signals

The 100 SMA remains below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. this means that the selloff is a lot of probably to resume than to reverse.

The shorter-term moving average seems to be holding as resistance for now, however a bullish flag also seems to have formed. this is usually seen as a continuation signal and a break higher may lead to a test of the 200 SMA dynamic inflection point. a break past this space might be enough to verify that a longer-term uptrend is taking place.

RSI is already turning lower from overbought levels to indicate that selling pressure is build up. equally stochastic is also pointing down to signal a come back in selling pressure even without hitting overbought conditions. If bears come back, bitcoin may still slump back below the trend line and resume the slide.

Bitcoin seems to be off to a fresh positive begin so far this quarter and month as it staged a sharp rally. it may have also gotten a lift from bullish remarks by BitMEX co-founder Arthur Hayes who predicted that it'll reach $50,000 by the end of the year. He cited:

“We could definitely find a bottom in the $3,000 to $5,000 range. But we’re one positive regulatory decision away, many an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of the year.”

He added that the recent dips in price may encourage more investors with a lot of capital to hop in at better levels.