BTCUSD: Double Bottom Pattern Above $39,000

Bitcoin was unable to continue its last week’s bullish momentum and started to decline after touching a high of $47,184 on April 5th.

Bitcoin broke the $40,000 support and touched a low of $36,210 in today’s Asian trading session.

The selloff continues across the crypto markets, and the global investor sentiments are low due to the continuation of the Russia-Ukraine war and its emerging impacts on the prices of energy and stock markets.

After falling below the $40,000 handle, bitcoin found support and has entered a mildly bullish channel in today’s European trading session.

We can clearly see a double bottom pattern above the $39,000 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

The Stoch and the Williams percent range are indicating an overbought level which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 43 indicating a WEAK demand for bitcoin at the current market levels.

Bitcoin is now moving below its 100 hourly simple moving average and its 200 hourly exponential moving average .

Most of the major technical indicators are giving a BUY signal, which means that in the immediate short term, we are expecting targets of $41,000 and $43,000.

The average true range is indicating LESSER market volatility with a mild bullish momentum.

• Bullish reversal seen in bitcoin above $39,000
• The StochRSI is indicating an OVERSOLD level
• The price is now trading just above its pivot level of $40,236
• Some of the moving averages are giving a BUY market signal

Bitcoin: Bullish Reversal Seen Above $39,000

Bitcoin continues to move in a mildly bullish momentum with an upwards projection towards the level of $41,000 in the European trading session today.

In the immediate term, we are expecting a continuation of this bullish trend with the price of bitcoin ranging between the levels of $42,000 and $44,000 as it has entered into a consolidation phase now.

The drop in the level of BTCUSD that we saw last week was due to the profit-taking by the short-term investors.

The immediate short-term outlook for bitcoin is mildly bullish ; the medium-term outlook is neutral; and the long-term outlook remains neutral under present market conditions.

The price of BTCUSD is now facing its classic resistance level of $40,336 and Fibonacci resistance level of $40,454, after which the path towards $41,000 will get cleared.

We can see that the daily RSI is below 50 printing at 38 which indicates that in the medium-term prices are expected to decline further.

In the last 24hrs, BTCUSD has gone down by 3.17% with a price change of -$1319, and has a 24hr trading volume of USD 36.665 billion. We can see an Increase of 60.52% in the trading volume as compared to yesterday, which is due to the selling by the long-term Investors.

The Week Ahead

The price of bitcoin is now moving in a consolidation phase above the level of $40,000. We can see some range-bounded movements between $41,000 and $43,000.

If the prices of bitcoin continue to remain above the important psychological support level of $40,000, next week, we may see some correction in the midrange upwards towards the $42,000 handle.

In the immediate short term, bitcoin’s mildly bullish momentum is expected to continue pushing to above the $41,000 handle this week.

The price of BTCUSD will need to remain above the important support level of $40,000 this week.

The weekly outlook is projected at $42,000 with a consolidation zone of $41,500.

BTC Market Cap

Due to the weak global investor sentiments coupled with the ongoing Russia-Ukraine war and the rising inflation , the BTC market cap has fallen down below $800 billion.

The present total market capitalization of bitcoin stands at $764 billion.

Technical Indicators:

The average directional change (14-day): at 44.90 indicating a BUY

The ultimate oscillator: at 62.26 indicating a BUY

Bull/Bear power (13-day): at 227.32 indicating a BUY

The rate of price change: at 0.88 indicating a BUY