Bitcoin is currently trading 2.24 percent higher than Tuesday’s intraday low of $55,310. The BTC has been concentrating on reversing the losses that gripped the entire market last week. The attempts, however, were thwarted by the $60,000 psychological level on November 21. As a result, the Bitcoin price has dropped towards the $55,300 support level, forming a double-bottom chart pattern.
Bitcoin Price To Reclaim The Crucial $60K Support
BTC/USD is trading in the red at $56,533, with a double-bottom pattern forming on the four-hour chart after the sell-off was halted at $55,310. This level is occupied by the intra-day low of November 19. A double-bottom is an extremely bullish chart pattern that frequently leads to a trend reversal.
This pattern appears when an asset tests a support level twice without breaking below it. As shown on the BTC/USD four-hour chart, the two bottoms are usually separated by a moderate peak.
When the Bitcoin price rises above the resistance level equal to the peak at $60,224, a breakout from this technical pattern will be confirmed. If BTC reaches this level, it will have increased by approximately 7% from its current price, rising above the crucial $60,000 psychological level.
This bullish narrative adds to the Moving Average Convergence Divergence (MACD), which sent a bullish signal on the four-hour chart. This happened yesterday when the MACD (blue) line crossed over the signal line. When the MACD crosses the neutral line into the positive region, the uptrend will gain traction.
It is important to note that a daily close above Bitcoin’s immediate barrier of $56,862 is required to sustain the anticipated upward breakout.
Can BTC’s Upward Breakout Be Invalidated?
It is worth noting that the uptrend will be invalidated if the RSI retraces back towards the oversold zone. Closing the day below the $56,000 support level will also stymie recovery efforts and spark another sell-off; resulting in another correction towards the November 19 low of $55,310.
Source: Bitcoin Warrior