Bitcoin is forming a double bottom pattern near the $ 45,500 zone against the US Dollar. BTC is on the rise and there could be a break to the upside above $ 47,200.
- Bitcoin initiated an upward correction from the $ 45,500 support zone.
- The price is now trading near $ 47,000 and the 100 hourly simple moving average.
- A major downtrend line is forming with resistance near $ 47,000 on the hourly chart of the BTC / USD pair (data feed from Kraken).
- The pair could start a major rally if there is a clear move above the $ 47,000 resistance.
Bitcoin price forms double bottom
The price of Bitcoin fell back below the $ 46,500 level. BTC traded below the $ 46,000 level, but the bulls were active near the $ 45,500 support zone.
A low was formed near $ 45,600 and the price is now recovering higher. It appears that the price is forming a double bottom pattern near the $ 45,500 zone. There was a move above the 23.6% Fib retracement level of the downward move from the $ 48,289 high to $ 45,600 low.
The price of Bitcoin is now trading near $ 47,000 and the 100 hourly simple moving average. It is facing resistance near the $ 47,000 zone. A major downtrend line is also forming with resistance near $ 47,000 on the hourly chart of the BTC / USD pair.
The trend line is near 50% of the Fibonacci retracement level of the downward move from the $ 48,289 high to $ 45,600 low. A clear move above the trend line could represent a strong move above $ 47,200.
Source: BTCUSD on TradingView.com
The next key resistance could be $ 48,000, above which the price could rally towards the $ 48,500 resistance. If the indicated double bottom pattern is valid, it is possible for the price to move up towards the $ 50,000 resistance zone.
Limited dips in BTC?
If bitcoin fails to clear the $ 47,000 resistance zone, a new decline could begin. An immediate support to the downside is near the $ 46,500 level.
The first major support is near $ 46,200. A break to the downside below the $ 46,200 level could push the price towards the $ 45,500 support, where the bulls could remain active for the near term.
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently above the 50 level.
Major Support Levels – $ 46,200, followed by $ 45,500.
Major Resistance Levels – $ 47,000, $ 48,000, and $ 50,000.