Bitcoin (BTC) continues to trend upward after suffering a slight drop on Monday (6). What to expect from the largest cryptocurrency in the world today?
Data from CoinGecko shows that BTC’s volatility in the last 24 hours was practically zero, with the price rising just 0.1%. However, it remains above the important $64,000 support.
Furthermore, its price appears to have formed an important pattern that precedes major jumps on the 4-hour chart.
Bitcoin forms double bottom
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The 4-hour chart shows that Bitcoin began a slight decline on Monday morning, falling from $65,520 to $62,630. After spending a few hours stabilizing at this level, the cryptocurrency began a new jump, trading at US$64,100 at the close of the article.
As a result, a double bottom was formed in this region, as BTC had already started a new jump in the US$62,600 region last Sunday (5). The double bottom is one of the biggest trend reversal patterns, generating strong price jumps.
Furthermore, this pattern was formed near the 21-period exponential moving average (orange), which remains below the 9-period EMA (blue), which shows that the current trend is bullish.
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To confirm this bullish scenario, Bitcoin would need to form a higher top than the previous one, at US$65,520. If this happens, its price could rise to the region of US$67,000. On the other hand, a drop below the double bottom zone could trigger a retest of the bearish parallel channel broken last week at $62,000.
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