Ready To Run: Bitcoin Forms Best Performing Bull Market Bottoming Pattern
28 Luglio 2021 - 10:00PM
NEWSBTC
Bitcoin price this week blasted off from $30,000 to $40,000 in a
25% move. Although the momentum was provided by an epic short
squeeze, the leading cryptocurrency by market cap could continue to
run much higher if diagonal downtrend resistance is broken. The
breakout would confirm what looks like a bump-and-run reversal
bottom, which according to the authority in chart patterns, has the
best bull market performance out of 39 other chart patterns. Could
this be the signal that bulls have been waiting for to restart
their charge? Bitcoin Bulls Could Be Ready To “Bump And Run” After
one the worst quarterly closes on record and a monthly selloff that
wiped out 50% off crypto prices, investors are breathing a sigh of
relief with Bitcoin finally headed away from the bottom range
around $30,000. A couple brief plunges to the yearly open were
bought up with fury, which eventually led to a reversal and a short
squeeze. With Bitcoin price now at around $40,000 once again, the
leading cryptocurrency by market cap has formed what looks like the
early stages of a strong performing bull market bottom. Related
Reading | How The 55% Bitcoin Correction Revives Comparisons To
Past Bull Cycle The type of bottom formation is called a
“bump-and-run reversal bottom” and it isn’t the first time one has
been spotted on the Bitcoin price chart. The pattern was also
potentially the signal that sent the cryptocurrency from $3,000 to
$13,000 the first time. If the signal is valid again, could Bitcoin
see another more than 4x gain from the bottom? A similar return and
rise from current levels, would put Bitcoin on track to reach a
price of $130,000 per BTC before the rally is over. Has the
cryptocurrency formed the best performing bull market bottom? |
Source: BTCUSD on TradingView.com Reversal Pattern Bull Market
Performance Is The Best There Is But the question is, is this a
valid bump-and-run-reversal bottom pattern? The chart above shows a
textbook comparison to the current pattern. Even the volume
structure appears similar, with volume increasing during the
recovery, but never quite reaching the amount traded on the way
down. According to Thomas Bulkowski who has studied the results of
thousands of chart patterns, says that the BARR bottom is the best
performing bull market pattern out of 39. Related Reading | The
Fibonacci Sequence And Why $30K Bitcoin Is So Important The pattern
is characterized as looking like a “frying pan” with the handle
acting as the “lead in” phase. Price action follows a downward
sloping trend, which when broken leads to a sharp move to the
upside. After penetrating the downtrend line, Bitcoin could pull
back tor a throwback and second “bump.” At that point, the
cryptocurrency should put in the final bull signal before the
current crypto market cycle has officially ended. 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
Grafico Azioni Bitcoin (COIN:BTCUSD)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Bitcoin (COIN:BTCUSD)
Storico
Da Apr 2023 a Apr 2024