The Idea That The Bitcoin Bottom Is In Is Broadening
August 05 2021 - 3:00PM
NEWSBTC
Calls for a trip back to $20,000 or even lower were in abundance
after Bitcoin collapsed by 50% and sent the market into a bearish
state. However, the idea that Bitcoin has bottomed is beginning to
broaden. That statement is also a double entendre, referencing a
potential chart pattern which further supports the theory. Here is
a closer look at the potential broadening wedge bottom pattern, how
the recent market conditions fit, and what to expect if the pattern
confirms. The Case For The Bottom Being In Begins To Build Bitcoin
price collapsed from highs set in Q2 around $65,000 to as low as
$28,000 currently. Such a hasty crash that wiped out the entire
year’s rally thus far, was enough to turn even the strongest of
hands bearish. But bears have been unable to push the price per BTC
any lower than the level stated above. Bulls have been equally as
weak, but one side should soon given in. The tug of war and
bouncing back and forth through a widening trading range, has
caused Bitcoin price action to form a potential broadening bottom
pattern. Related Reading | Five Bullish Monthly Charts That Suggest
Bitcoin Will Blast Off The pattern in question is called a
broadening bottom, which is a traditional broadening wedge with a
final partial decline before taking off to retest highs. If Bitcoin
price can reclaim those highs, the bull market will be back on with
even more momentum than before. Is BTC forming a broadening bottom?
| Source: BTCUSD on TradingView.com Broadening Bottom Pattern Could
Be The Boost Bitcoin Bulls Need Chart patterns come in all shapes
and sizes. Some of the most common shapes are triangular or
wedge-like, which show price action converging to an apex. Wedges
can also expand outwardly, and the trading range within them
broaden. After touching the top trend line for one last time before
takeoff, a partial decline finds horizontal support around where
the first touch of the trend line occurred. With support retested
and unable to push lower, price takes off through the upper
boundary. Related Reading | How A Hammer & The Golden Ratio
Could Mean 6 More Months Of Bullish Bitcoin Based on the measure
rule, the target would be taken from the lowest touch of the bottom
trend line to the top, then applied at the point of breakout. This
should theoretically take Bitcoin price back to around $60,000,
where it will need to prove that the bull run is still in full
effect. Failure to reclaim former resistance and flip it to
support, could result in another try for below $28,000 – and with
more momentum at their back, bears could ultimately be successful.
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC
Telegram. Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024