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.

Shakira

I’m a professional writer specializing in the field of cryptocurrencies. My work has been published in numerous online and offline publications which has made me one of the leading authorities in this industry. In addition to my work as an author, I’m also a highly sought-after speaker on the topic of cryptocurrency investing. I have given talks at some of the world’s most prestigious financial institutions, and my advice is regularly featured in the media.