- Bitcoin’s formed double-bottom pattern on the 4-hour chart points the price towards a considerable liftoff.
- The 4-hour MACD illustrated that sellers have more control over the price.
Bitcoin is slightly in the red toward the end of the Asian session on Tuesday. The largest digital asset by market capitalization has sought higher support following another correction from highs around $60,000. Currently, buyer congestion around $52,500 helps to keep sellers at bay. On the other hand, Bitcoin is trading in a crucial technical pattern, implying that a breakout is in the cards.
The 4-hour chart brings to light the formation of a double-bottom pattern. This is an extremely bullish technical reversal pattern that comes into the picture after an asset hits a lower price point a couple of times, separated by a peak. Note that there is usually a moderate price drop between the two bottoms.
The double-bottom pattern gets confirmed in technical analysis when the asset’s bounces off the support areas and rises above the recent peak. An increase in volume characterizes the breakout, thus validating the upswing.
BTC/USD 4-hour chart
Meanwhile, Bitcoin is trading slightly above $53,000. The main aim for the bulls is to hold firmly to the support at $52,500. A bounce from this level is likely to catapult Bitcoin to highs past $60,000. Reclaiming support above $54,000 may encourage buyers to increase their positions in the market and eventually push the price north.
It is worth mentioning that the Moving Average Convergence Divergence still has a bearish impulse. The MACD line (blue) is holding under the signal line, emphasizing the bearish grip.
Bitcoin intraday levels
Spot rate: $54,108
Relative change: -265
Percentage change: -0.5%
Trend: Short-term bearish bias