BTCUSD: Double Bottom Pattern Above $20798
Bitcoin was unable to sustain its bearish momentum and after touching a low of 20794 on 20th Aug, it has entered into a consolidation channel above the $21000 handle today in the European trading session.
We can see that bitcoin failed to clear its resistance zone located at $25500 for the fourth time this month.
After touching a high of $25195, we can see some downwards correction in the prices towards the $20798 levels.
We can clearly see a double bottom pattern above the $20798 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.
Bitcoin touched an intraday low of 20909 in the Asian Trading session, and an intraday high of 21510 in the European trading session today.
Both the STOCH and STOCHRSI are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.
The relative strength index is at 57 indicating a strong demand for bitcoin at the current market levels and the continuation of the buying pressure in the markets...More info: blog FXOpen