Bitcoin plays again to the (double) bottom and simulates a descending triangle
The world’s largest digital currency drops more than 18% in 2 days and has been testing the Support zone between $ 29,700 and $ 3,100. What can we take from the graph?
Graphical Analysis of Bitcoin in H4
For the third time Bitcoin tests an important support zone, underneath the LTA, which may form a descending triangle soon. But what will be the next steps?
Note that in H4, we had a strong red candle breaking the EMA200 (red average) downwards. But this closing does not exceed the low of the second previous candle. Soon after we have a hammer formed which indicates a reversal or a stronger correction.
THE Downward trend continues to test the support zone (the rectangle with the blue arrows), but it is very likely that we will see an upward corrective movement in the next few hours, looking for at least the EMA21 (blue average).
If the price of Bitcoin breaks that support zone down, we will possibly see a downward path to $ 23000 which is the next relevant support.
The other alternative is to break the averages up and test the LTB (downtrend line), but for now, this is the least likely point.
Let’s see if the support zone is safe and returns to averages at $ 33000-34000.