BTCUSD: Double bottom pattern above $18566
Bitcoin failed to sustain its bearish momentum and after touching a low of 18279 on September 21, the price has continued to rise and crossed the $20,000 level in the European trading session today.
This breakout to the upside was long overdue and now marks the start of the bounce towards the $25,000 level.
We can see the formation of bullish engulfing lines on the 15-minute and weekly periods.
The momentum indicator has returned above zero, indicating a bullish scenario on both the 30-minute and daily time frames.
We can clearly see a double bottom pattern above the $18566 handle, which is a bullish reversal pattern because it signifies the end of a downtrend and a switch to an uptrend.
Bitcoin touched an intraday low of 19097 in the Asian trading session and an intraday high of 20310 in the European trading session today.
Both the STOCH and the STOCHRS are indicating overbought levels, which means that in the near term a decline in prices is expected…More info: blog FXOpen