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Bitcoin Price Forming a Double Bottom Pattern, Are the Longs Ready?

Highlights

    Bitcoin price appears to be more or less stagnant trending around $17K

    Bitcoin ecosystem might have a shortage of miners which might have impacted the BTC price

    The Bitcoin active address has hit a rock bottom levels which suggest the traders are just HODLing bitcoin

Bearish-Fall Might Follow Bitcoin Price Before It Ascends to the Moon

Bitcoin price witnessed a dramatic plunge in the recent past which was anticipated by many analysts. As the asset was overbought very heavily and hence a steep correction was imminent. The present trend showcases the BTC price trending within a very thin range, fluctuating around $17K since the crash. 

Bitcoin price chart today

In the current hourly chart of Bitcoin price, a very similar moment has been recorded. It initially had formed a double top pattern which was followed by a drastic plunge, and now a double bottom pattern has emerged. Therefore is a drastic surge approaching?

At present, the BTC price is trending within an ascending triangle and in a crucial position to break-out the triangle upwards. Hence showcasing a clear indication of a surge in the coming days.

Surprisingly, one of the analysts Fiat Jack has predicted a still more plunge with the BTC price which may pull the price below $12,000. However, his analysis also points out towards the bull run which may rally above $20K after the plunge.

Also Read: Will Bitcoin Price Break its Previous Highs or Sees its First Dump?

Are Traders Uncertain on Btc Price or Waiting for the Bigger Bull Run?

As seen in the above chart, the trading volume has decreased notably since the bitcoin crash. The selling and buying pressure appears to have eased out which clearly indicates, no heavy purchases or sell-outs are taking place in the crypto space.

According to the on-chain data analysis platform Glassnode, Bitcoin’s active supply hits an 18-month low. 

The descend in the active supply indicates that the traders or the Bitcoin holders are just HODLing the asset without trading. Previously when the active address hit a 19-month low in July 2020, the Bitcoin price which was struggling to surpass $10K, rallied over $12K.

Collectively, Bitcoin price currently might face a slight pullback, but the rally is expected to continue further in the coming days. The price may hit $20K in the near future but whether it would attain $20K in 2020, is very hard to say.

Also Read: Bitcoin Continued Its Bull Run After a Steep Correction, Is $20k Imminent?

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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