Jack's Trading Classroom | Potential Bottom Pattern for BTCUSD

After a decline of more than 50% earlier, as seen in previous sharp increases or decreases, there is a high probability of short-term consolidation and adjustment.

After a drop of over 50% earlier, as with previous significant rises or falls, there is a high probability of short-term consolidation and adjustment.

Currently, we see a potential bottoming pattern on the four-hour candlestick chart of BTCUSD. In the Bitcoin four-hour chart, it shows a potential bottom pattern with two completed bottoms, and the upper descending resistance trendline has been breached. The overall trend is gradually strengthening in the short term.

What to watch for in the future is the previous high resistance at 42444.0, which can also be seen as the neckline resistance of a double bottom pattern. After the resistance is broken and a buy condition is established, the right foot low point at 31100.0 can be set as the stop-loss level for entering a long position.

The profit-taking targets are as follows:

• Fibonacci sequence resistance range 127.2-138.245529.5-46777.5
• Fibonacci sequence resistance 161.849454.5
• Double bottom pattern target price 53788.0

In recent days, the digital currency market has seen significant volatility. It is recommended that operators strictly adhere to risk control measures and avoid high leverage and high contract volumes to prevent additional losses due to volatile market conditions. This article reflects personal opinions, please read with caution, as cryptocurrency trading may involve risks to your capital.

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