Bitcoin is forming a double bottom pattern near the $45,500 zone against the US Dollar. BTC is rising and there could be an upside break above $47,200.
Bitcoin started an upside correction from the $45,500 support zone.
The price is now trading near $47,000 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $47,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a major increase if there is a clear move above the $47,000 resistance.
Bitcoin Price Forms Double Bottom
Bitcoin price declined again below the $46,500 level. BTC traded below the $46,000 level, but the bulls remained active near the $45,500 support zone.
A low was formed near $45,600 and the price is now recovering higher. It seems like the price is forming a double bottom pattern near the $45,500 zone. There was a move above the 23.6% Fib retracement level of the downward move from the $48,289 swing high to $45,600 low.
Bitcoin price is now trading near $47,000 and the 100 hourly simple moving average. It is facing resistance near the $47,000 zone. There is also a major bearish trend line forming with resistance near $47,000 on the hourly chart of the BTC/USD pair.
The trend line is near the 50% Fib retracement level of the downward move from the $48,289 swing high to $45,600 low. A clear move above the trend line could stage a strong move above $47,200.
The next key resistance could be $48,000, above which the price might rise towards the $48,500 resistance. If the stated double bottom pattern is valid, the price may possibly rise towards the $50,000 resistance zone.
Dips Limited In BTC?
If bitcoin fails to clear the $47,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $46,500 level.
The first major support is near $46,200. A downside break below the $46,200 level could push the price towards the $45,500 support, where the bulls might remain active in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Levels – $46,200, followed by $45,500.
Major Resistance Levels – $47,000, $48,000 and $50,000.
