Bitcoin (BTC), although it may have fallen 70% since its peak in November 2021, its rebound movement in the last three weeks raises the possibility that there will be more upside in Q3.
Bitcoin prices to rise by 30%
The “Adam-and Eve double bottom” technical pattern is at the heart of bullish arguments.
The structure is visible when the price forms two bottoms-and-recovery periods. The “Adam” cycle has a pointed bottom while the “Eve” cycle is round. The resistance line is formed by the common peaks in both cycles.
After the price breaks above resistance, the Adam-and-Eve patterns resolves. This is usually accompanied by an increase in trading volume.
Technical analysis dictates that the length of the breakout’s target is equal to the distance between its lowest point and the resistance line.
BTC/USD 4-hour price chart with Adam-and-Eve patterns Source: TradingView
According to technical descriptions, BTC/USD is close to an Adam-andEven pattern breakout. Let’s say that the price closes higher than the resistance line. It will then be more likely that the price continues its rally towards $28,000-$28,000.500.
This is a more than 30% increase in Q3/2022, if you compare it to the current price level.
Targets for conflicting price signals $16K
However, the Adam and Even bullish structure seems to be in conflict with another technical setup, which suggests that Bitcoin will experience more pain in the coming days.
The continuation pattern is also known as the “ascending triangular” and occurs when the price stays within a horizontal trendline resistance or rising trendline support after a sharp move up or down.
Related: Bitcoin price rises to its highest weekly candle since March, despite DXY peak
It appears that it is forming on the daily candle chart following Bitcoin’s downtrend. This suggests that more downside is possible as the price meets overhead resistance.
BTC/USD daily chart with ascending triangle pattern. Source: TradingView
The bearish scenario for the ascending triangle is between $16,000 and $20,000. It all depends on the breakdown point.
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Eileen Wilson –Technology and Energy
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