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Monday, March 4, 2024

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Bitcoin Aims Strong Recovery, Here’s A Key Pattern For Short-term Bottom

Bitcoin price is likely forming a double bottom pattern near the $42,150 zone against the US Dollar. BTC is showing positive signs and it could climb towards $47,000.

Bitcoin is finding a strong buying interest above the $42,000 and $42,150 support levels.
The price is still trading well below $47,000 and the 100 hourly simple moving average.
There was a break above a connecting bearish trend line with resistance near $44,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely forming a short-term double bottom pattern with support near $42,150.

Bitcoin Price Holds $42K
Bitcoin made another attempt to surpass the $42,000 and $42,150 support levels. However, the bulls were active above the $41,500 level. The recent swing low was formed near $42,157.
It seems like the price is forming a short-term double bottom pattern with support near $42,150. It recently started a steady increase above the $44,000 resistance levels. There was a break above the 23.6% Fib retracement level of the downward move from the $49,827 high to $42,157 low.
Moreover, there was a break above a connecting bearish trend line with resistance near $44,500 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com
The pair is now consolidating above the trend line and $44,000. An immediate resistance is near the $45,000 level. The first key resistance is near the $46,000 level. It is close to the 50% Fib retracement level of the downward move from the $49,827 high to $42,157 low.
Any more gains could lead the price towards the $47,000 resistance zone. The 100 hourly simple moving average is also sitting near $47,000 to act as a hurdle in the near term.
Fresh Drop in BTC?
If bitcoin fails to clear the $45,000 and $46,000 resistance levels, there is a risk of a fresh decline. An initial support on the downside is near the broken trend line and $44,000.
The main support is now forming near the $42,150 level (the double bottom zone). A downside break below the $42,150 and $42,000 support levels could spark another strong decline 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 now above the 50 level.
Major Support Levels – $44,000, followed by $42,000.
Major Resistance Levels – $45,000, $46,000 and $47,000.

Kieran Dickens
Kieran Dickenshttp://btcsonic.xyz
I have been a crypto author for over 2 years now and have written for numerous publications. I have a vast amount of experience in the industry and continue to stay up-to-date on all the latest news and developments. My writing is highly accurate and informative, and I always aim to provide value to my readers.

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