Yesterday we saw a pretty strong bullish BTC movement from 13,600 to 15,500 in just a few hours. That upward movement formed a bullish channel, which you can see below.
This is Bitfinex 4h chart. I’m looking on their charts most of the time because most Bitcoins are traded on that exchange, but personally I’m trading on Binance.com, a new exchange with the most interesting altcoins, lowest fees and the best support which always reply quickly.
Last night Bitcoin reached $15,500, so it almost touched the upper line of the channel. After that, sellers pushed BTC down, back to 14,700 zone where it found some support. However, previous 4h candle looks bearish and I expect Bitcoin to drop from current level to $13,800 or so, where it would touch the lower line of the channel.
If that happens I expect buyers to step in and to push BTC up again. In that case price could rise up to 16,500 USD. Right there it would again touch the upper line of our channel. More importantly previous BTCUSD top was at 16,500 so BTC would face very strong resistance at that level. That would be so called confluence – when we had two or more important resistances in one point. More of them – the resistance is stronger. I assume a lot of traders would sell BTC there (including me), so BTCUSD could fall again. This time to $14,500 or so.
What can happen after that is really hard to predict. Almost every two days we have some FUD news from Korea and China. They always can come up with something new which can push price down a lot. This morning I saw an article in Chinese, they claim the government is about to ban illegal BTC mining…?
Possible BTCUSD Double Bottom
Let’s back on our BTCUSD chart. As you can see, very nice double bottom is forming:
For a double bottom pattern to be confirmed, wee need first BTCUSD to break above $16,500. Double top is strong bullish pattern, so this is good for all BTC hodlers and traders who’re long at the moment. If BTCUSD manage to break above $16,500 perhaps we can expect it to retest the previous all-time high.
What do you think about this scenario? Is it BTC heading to $16,5000 or to $12,000 again? Please leave your comment below and let us know!