Disclaimer: The findings in the following article are the sole opinion of the author and should not be construed as investment advice.
BitcoinPrice movement over the past week appeared to have formed a curve, perhaps hinting at a potentially bullish pattern that could carry BTC to $ 11,700. At press time, Bitcoin was trading at $ 11,432, and the price of the cryptocurrency would likely record a downward swing, followed by a small rally that could lead to the completion of the above-mentioned bullish pattern.
Bitcoin 1 hour chart
The one-hour chart for Bitcoin was showing a potential cup and handle pattern in the formation or it could be a rounded bottom, at most. Either way, both patterns lead to a bullish breakout.
Potential rounded bottom or cup and handle pattern have necklines or a significant resistance level that the price must overcome. This level is shown in the table as a sloping line connecting the top of the bowl or the rounded bottom. At press time, the price was very close to approaching this level. However, it should be noted that the price can come from here in two ways,
- Rejection of decreased resistance leading to mango formation.
- A successful break above the rejection, followed by a retest to start a small bullish rally.
As mentioned above, either way, this is a bullish case for Bitcoin. Therefore, yearning for Bitcoin here would be a great opportunity.
With an entry position at the bottom of the potential handle [$ 11,315.97], obtain a profit of $ 11,725.34 and a stop-loss of $ 11,196.03, the operation would produce a risk-reward ratio of 3.41R.
The RSI indicator showed a bounce in the overbought level, however, there had been no higher gap. Therefore, we can expect this downtrend on the RSI to continue to the 50 level. This also helps the cup-and-handle box.
The OBV indicator showed a steady but slowly rising OBV line, which was complementary to the slow rise in price on a curve, further strengthening the pump.
Overall, the Bitcoin price looked healthy and seemed due to a small short-term correction and a good short-to-medium-term rise.
This is a machine translation of our English version.
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