This first chart on Bitcoin (BTC/USD) below is a 4-hour showing a wider view of recent price activity.
Highlights for above 4-hour chart:
- Potential double bottom trend reversal pattern forms around the 61.8% Fibonacci retracement of the uptrend starting from the September swing low.
- Breakout above approx. 13,052.12 swing high to trigger double bottom breakout
- Another smaller double bottom forms at the most recent swing low (9,927.54) (2nd bottom of larger double bottom pattern).
- Current price action contained within the internal downtrend line and the small uptrend line starting from the first bottom (corrective low) around 9,222.
- Breakout through a line will signal either further strength of weakness.
- Decisive move above downtrend line indicates further strength, and drop below short-term uptrend line, a sign of additional weakness.
- Breakout above downtrend line may lead to eventual rally into resistance around the larger downtrend line coming off the record high around 19,891.
- Watch Fibonacci retracement levels for interim targets, as displayed on the chart.
Next we have a 2-hour chart with a shorter term view.
- Short-term double bottom was triggered on move above 10,994.56.
- Small double bottom forms around support of the 78.6% Fibonacci retracement (10,0041.65) of short-term rally and on a test of support of the long-term downtrend line [starting from the record high (not shown on chart)]
- ABCD pattern (short-term minimum target) completes at 11,970.46.
- ABCD extension to 127% completes at 12,373.65.
- ABCD extension to 161.8% completes at 12,886.54
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Disclosure: I am/we are long BTCUSD.