Bitcoin price This week it surged from US$30,000 to US$40,000, an increase of 25%. Although momentum is provided by an epic short squeeze, if the diagonal downtrend resistance is broken, the leading cryptocurrency by market capitalization may continue to rise.
The breakout will confirm what looks like a bumpy and running reversal bottom. According to the authority of the chart pattern, it has the best bull market performance among the other 39 chart patterns. Could this be a sign that the bulls have been waiting for the signal to start charging again?
Bitcoin bulls may be ready to “bump and run”
After one The worst quarterly closing on record The monthly sell-off caused the price of cryptocurrency to fall by 50%. Investors breathed a sigh of relief, and Bitcoin finally moved away from the bottom range of around $30,000.
Several brief plunges in the annual Open were bought by anger, which eventually led to a reversal And a short squeezeWith the price of Bitcoin now reaching around $40,000 again, the leading cryptocurrency by market capitalization has formed the early stages of a strong bull market bottom.
The type of bottom formation is called “bumps and running reversal bottoms,” and this is not the first time it has been found on the Bitcoin price chart.
The pattern may also Signal For the first time, the cryptocurrency was raised from US$3,000 to US$13,000. If the signal is valid again, can Bitcoin see a gain of more than 4 times from the bottom? Similar returns and an increase from current levels will allow Bitcoin to reach a price of $130,000 per Bitcoin before the end of the rally.
Has the cryptocurrency formed the best performing bull market bottom? | Source: BTCUSD on TradingView.com
Reversal pattern bull market performance is the best
But the question is, is this an effective bump and run reverse bottom pattern? The figure above shows a comparison with the current mode of the textbook. Even the trading volume structure looks similar, with trading volumes increasing during the recovery, but never fully reaching the trading volume during the decline.
According to Thomas Bulkovsky Who studied the results of thousands of chart patterns, he said that the BARR bottom is the best performer among the 39 bull market patterns.
Related Reading | The Fibonacci sequence and why the $30,000 Bitcoin is so important
The characteristic of this pattern is that it looks like a “frying pan” with the handle acting as the “import” stage. The price movement follows a downward sloping trend, which when broken will cause a sharp upward movement.
After penetrating the downtrend line, Bitcoin may fall back and undergo a second “shock”.At that time, cryptocurrency should be put in The last bull signal Before the current crypto market cycle officially ends.
Featured image from iStockPhoto, Charts from TradingView.com