BTCUSD Adam and Eve Formation | Double Bottom !

BTCUSD Adam and Eve Formation | Double Bottom !

1RyHVD - BTCUSD Adam and Eve Formation | Double Bottom !

Hello Traders!

Today’s chart update will be on Bitcoin’s recent developments, a potential bullish formation, an Adam and Eve bottoming is playing out… We also have a visible double bottom within this formation.

Points to consider,
– Trend Consolidating after initial bull move
– Support is found in the green zone
– Local resistance is at the $9,700 area
– Stochastics currently trading neutral
RSI respecting trend line
– EMA’s supporting price
Volume has tapered off
– Technical target in confluence with local top

After recent pump in bitcoin’s price, it has been consolidating above the $9,000 price, which is very bullish . Adam was formed by a V-Shape recovery and Eve is currently being formed by a rounded bottom, this technically is a bullish formation, a pattern that needs to break resistance for confirmation.

Support is found in the green zone, price has tested this area twice, putting in a potential double bottom within a bullish formation. Local resistance is found at the $9,700 area, this is a key area in the bullish formation, and it needs to break for a confirmation and a continuation in the overall trend.

The Stochastics is currently trading neutral, is has stored momentum in both directions. We need to see more signs to determine where the stochs are headed. The RSI however is respecting its trend line ; it needs to hold for Eve’s rounding bottom to complete.

The EMA’s similarly to the RSI needs to hold price as support to complete Eve’s rounding bottom as it comes into local resistance. Volume is very important to watch if and when price testes local resistance. We need to see an influx of bull volume upon breakout; this will complete and confirm the bullish formation.

Overall, IMO , this Adam and Eve pattern will come to fruition if the EMA’s successfully hold price as it comes into resistance. A break needs to be backed by bull volume to avoid the chances of a false break. The technical target for this Adam and Eve formation aligns perfectly with the local top…

What are your thoughts?

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And remember,

“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager

Published at Sun, 03 Nov 2019 00:26:12 +0000

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