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According to a TradingView crypto analyst named ‘TradingShot,’ the Bitcoin price has formed a Double Bottompattern and is on track to reach a new All-Time High (ATH) of $112,000. This potential shift in trajectory comes after the cryptocurrency experienced a severe price crash that briefly pushed it below the $100,000 mark. Bitcoin Price Finds Strong Support At Double Bottom
The Bitcoin price crashedbelow $100,000 earlier this week as the China-based Artificial Intelligence (AI) model DeepSeekgained significant popularity across the US and global investment market, overtaking OpenAI’s ChatGPT. While this decline came as a shock, triggering a massive sell-off, Bitcoin managed to recover over 50% of its losses in a short time. Related Reading End Of The Road For Bitcoin? Analyst Reveals When Price Will Crash To $50,000 2 days ago
Following this severe crash, TradingShot revealedthat Bitcoin had rebounded at a Double support level, using two strong support lines to prevent further price slips. The analyst shared a detailed price chart that highlights several Double Bottoms, including one forming near the 4-hour 200-Moving Average (4H MA200).
A Double Bottom patternis a chart formation that indicates a potential trend reversal from a downtrend to an uptrend. It is characterized by two consecutive lows around the same price level and creates a W-shaped movement. Double-bottom pattern to fuel BTC toward new highs | Source: TradingShot on Tradingview
Looking at the chart, the Bitcoin price is moving within an Ascending Channel, indicating a general uptrend. The 4H MA200 on the orange trend line is a strong Double Bottom support level, which Bitcoin recently tested for the first time in 12 days.
TradingShot also mentioned a “Pivot trend line” in which Bitcoin previously faced resistance, starting from its ATH on December17, 2024. This trend line now acts as a support line for the cryptocurrency, as its price has reversed near it. Notably, Bitcoin almost touched the bottom of January’s Channel Up, indicating a potential key support zone. This is similar to a pattern in December, where the cryptocurrency bounced off the same support and hit a new ATH. Key Resistance At 4H MA50 — Breakout Or Rejection?
In TradingShot’s chart, the 4H MA50 is indicated on the blue line, acting as a dynamic resistance level for the cryptocurrency. Currently, Bitcoin is trading below this Moving Average, meaning a breakout above this level could trigger more upside.
The analyst predicts that if Bitcoin breaks above the 4H MA50, it could continue its bullish momentumtoward a higher price level between $110,000 and $112,000. This massive surge would mark a new ATHfor the pioneer cryptocurrency, as the highest price Bitcoin has ever reached is above $108,000. Related Reading Bitcoin Upper Band Moves Above $105,400 – Where Price Is Headed Next 1 week ago
Supporting this bullish scenario, the TradingView analyst highlights Bitcoin’s Relative Strength Index (RSI), which shows oversold areas marked in green circles on the chart. Whenever RSI drops below 30, Bitcoin tends to rebound, indicating a potential for a strong bounce.
Conversely, the analyst forecasted a bearish scenario for Bitcoinif it faces a rejection around the 4H MA50. He predicts that Bitcoin could revisit the Double Bottom at $98,000, a bearish level observed on both December 23 and January 13. An even deeper correctionis expected for this cryptocurrency if it continues on a downtrend, with the analyst projecting a crash to $96,000. BTC trading at $102,586 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from iStock, chart from Tradingview.com