Bitcoin (BTC) – In the process of fulfilling a double bottom pattern

Bitcoin (BTC) – In the process of fulfilling a double bottom pattern

Posted on Tuesday, March 1 2022 at 9:31 pm GMT+0000

Bitcoin (BTC) kicked off the new week with a strong bullish tone and jumped more than 14% on Monday, stretching the bounce off the 34,100 low. The rally resumed for the second consecutive session, erasing almost all of the February losses, flourishing optimism about a possible double bottom reversal pattern.

The crypto king managed to crawl above the positively aligned 20 and 50-day simple moving averages, and oscillators are suggesting that the bullish momentum could persist. The MACD overstepped its signal line and just nudged above zero, and the stochastic is positively charged promoting upside price action.

Technically, overshooting the 45,900 handle will complete a bullish double bottom pattern. Such a move will trigger a more aggressive bullish wave, likely up to the December 27th high of 52,300 and the adjacent 161.8% Fibonacci extension level of the last down-leg at 53,180. If bulls manage to surpass these handles, they will turn their attention towards the target of the double bottom at 59,300 which overlaps with the November 30th high.

In the bearish scenario, where the price fails to conquer the 45,900 obstacle and shifts back lower, the simple moving averages and the February 26th inside swing high could come to the rescue. If downside forces strengthen, the bears may target the 34,120 low and the neighboring 33,000 bottom.

All in all, Bitcoin’s bullish tone is gaining and a move above 45,900 will officially confirm a bullish trend reversal shifting the medium-term outlook to positive.