Reason? Showing love. Let’s see if we can’t make some money here or figure out what’s going on at the very least.
If you have any alerts set or you’ve been checking various apps, then you likely noticed that Bitcoin has made some fairly decent gains over the past 24 hours. Let’s take a look briefly.
In the screen above, we can see that BTC has appreciated ~17% over the past four days, which is pretty astronomical (roaring); however, it still isn’t over the ever-present overhead resistance at $50k (we’ll take a look at that in a second).
First, let’s pan out a bit though because it appears the faint outline of a ‘double bottom’ can be made out. There are a few caveats we should take into account before declaring that this pattern exists, however.
This chart pattern is one of th easiest to identify since it looks just like it sounds.
There are a few ‘checks’ that must be confirmed (to ensure an accurate reading here).
-23.35% drop from the peak that was hit on September 5th (~$53k) to that first ‘bottom’ of the chart formation for Bitcoin (September 21st, 2021) around $40k.
From that point, the price rose to form what we’ll consider the ‘neckline’ at $44k a few days later.
From there, the price dropped -8.54%.
Of course, from that point (approx. 4 days ago), the price rose ~17-18% to bring us where we’re at now at the time of writing.
Let’s go ahead and add the bars to ensure that the formation’s pattern ( Bitcoin ), matches the expected activity (classically).
If not, that’s fine – we can forgive that, the main point isn’t to identify the formation so much as extracting the main point here, which is that the bulls were able to firmly prevent bears from pushing the price any further than $40k, which has served as a price range of contention in the past.
The upward trend in the RSI’s trajectory is significant. However, as customary, let’s go ahead and plot this trajectory via an overlaid arrow (we are not plotting a resistance / support line here, so the arrow will crossover the indicator line as well).
However, before closing out here, we’re going to take a look at the Librehash Reversion Ribbon V2.
Librehash Reversion Ribbon V2
Bitcoin looks . Not sure if there’s enough upside for this to warrant a valid R/R, but we’ll go ahead and plot one anyway.
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