Bitcoin breakout: Bitcoin has broken to the upside and pushed its way back above support.  But can it do it again? Covered: Give Me Some Dubbs A Double “W?” Potential Price Target Bitcoin Breakout: Give Me Some Dubbs Starting on the one hour chart, we find the Bitcoin has broken out of a “W” pattern […] The post Bitcoin Breakout? BTC Back Above Support After “W” Pattern Forms appeared first on CryptosRus.

Bitcoin Breakout? BTC Back Above Support After “W” Pattern Forms

Bitcoin breakout: Bitcoin has broken to the upside and pushed its way back above support.  But can it do it again?

Covered:

  • Give Me Some Dubbs
  • A Double “W?”
  • Potential Price Target

Bitcoin Breakout: Give Me Some Dubbs

Starting on the one hour chart, we find the Bitcoin has broken out of a “W” pattern to the upside, and is now back above our crucial support line at $58,367 USD.

A “W” pattern can be seen on the chart as a “double bottom,” with the second bottom usually higher than the first.  Since a “W” pattern is always preceded by a move down, it can also be called a “bullish reversal” pattern back to the upside.

Recommended: Take Me Down To Bitcoin City

A Double “W?”

When we zoom out to the four hour chart, we can see that the one hour “W” is actually inside of a larger “W” pattern.  This is what’s known as a “fractal,” or a repeating pattern of self-similarity happening at multiple scales.

 

A “W” pattern breakout happens when the price can start closing (in this case, on the four-hour) candles above the “neckline” of the pattern.  The neckline is a trendline connecting to the middle peak of the “W.”

The Bitcoin price is currently getting rejected at the neckline.  However, we are seeing a slight uptick in volume, and we are currently trading above the 20-Day Simple Moving Average on this time frame.  These are both encouraging signs.

Bitcoin Breakout: Potential Price Target

When traders look to extrapolate a potential price target of a successful “W” pattern breakout, they measure the length of the middle point of the “W” to its lowest point, and place it at the breakout spot.  The potential target of this breakout would put the Bitcoin price above $63,000.

 

If this move should occur, it would put the Bitcoin price back above the 20 Simple Moving Average, and would be in technical breakout of the bullish “falling wedge” pattern we have been tracking on the macro view.  As we have mentioned in previous posts, a breakout of that pattern could bring the price up to about $85,000.

Happy Thanksgiving, everyone.  I don’t know about you, but today I am thankful to see the Bitcoin price moving up!

For yesterday’s column, click here. 

The post Bitcoin Breakout? BTC Back Above Support After “W” Pattern Forms appeared first on CryptosRus.