Although the double bottom formation broke out to the bulls, it was obvious that the resistance would play a role in keeping the price from moving up to the predicted level of 40k for the short term. How ever just because we had a strong bounce of the downward trending resistance does not mean we are going to extreme bearish levels, but there is always a possibility as crypto assets can surprise a person sometimes related to media fluctuations.
As seen on the chart the price has bounced, but has not fallen below the strong support held up by the golden pocket. A move below this level of support will be a key factor in determining the direction of the price in the short term. One situation which is the price moves back down to the resistance of the downward trending channel, OR the price is held on the support of the golden pocket, resulting in a extended period of consolidation before the price is pinched by the channel and forced into decision.
An alternative technical indicator for the current price movement can also be described by the green line displayed on the chart as the 'alternative neckline'. If this is a phycological level, the double bottom has completed its form as the price has retraced and turned previous resistance (neckline) into support. This step is a clear indicator that we have bottomed out and are set to reverse as a double bottom is a reversal formation know by many and therefore phycologically is know to be a bullish signal.
Everything i predict in my articles are based solely on my own opinion and shouldn't be interpreted as a decision to place a trade off of, yet i like to inform people from a theoretically standpoint this current situation has generally played out bullish, BUT it is your decision to do what you want with your portfolio.
Thank you for your time always appreciate support and feel free to message me if you are down to debate or discuss any topic related to the field of crypto currency as well as the technicals that follows, as the knowledge i share does not get close to all the points of views and perspectives i have.
As seen on the chart the price has bounced, but has not fallen below the strong support held up by the golden pocket. A move below this level of support will be a key factor in determining the direction of the price in the short term. One situation which is the price moves back down to the resistance of the downward trending channel, OR the price is held on the support of the golden pocket, resulting in a extended period of consolidation before the price is pinched by the channel and forced into decision.
An alternative technical indicator for the current price movement can also be described by the green line displayed on the chart as the 'alternative neckline'. If this is a phycological level, the double bottom has completed its form as the price has retraced and turned previous resistance (neckline) into support. This step is a clear indicator that we have bottomed out and are set to reverse as a double bottom is a reversal formation know by many and therefore phycologically is know to be a bullish signal.
Everything i predict in my articles are based solely on my own opinion and shouldn't be interpreted as a decision to place a trade off of, yet i like to inform people from a theoretically standpoint this current situation has generally played out bullish, BUT it is your decision to do what you want with your portfolio.
Thank you for your time always appreciate support and feel free to message me if you are down to debate or discuss any topic related to the field of crypto currency as well as the technicals that follows, as the knowledge i share does not get close to all the points of views and perspectives i have.