Bitcoin might be making another attempt to confirm the long-term double bottom reversal pattern as it heads back to test the neckline resistance. A break higher could confirm that a climb of the same height as the chart formation might follow.
The 100 SMA is still below the longer-term 200 SMA on the daily time frame to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Still, price is moving above the 100 SMA as an early indicator of bullish pressure. The gap between the indicators is also slowly narrowing to reflect weakening selling pressure.
Price would need to clear the $4,300 barrier next to signal that an uptrend might be due. RSI seems to be turning back up and not inclined to keep sliding below the center line, so bullish pressure might be returning. Stochastic is heading up without reaching the oversold region also, indicating that buyers are eager to return.
Bitcoin might be drawing support from another set of bullish commentary as near-term support levels continue to be defended. Many are pointing to the end of “crypto winter” and the start of “crypto spring” as other coins are also seeing similar positive action, indicating that prices may have indeed bottomed out.
This sentiment is also supported by a handful of positive developments and a lot of anticipation for institutional investment. However, Mayne, a popular cryptocurrency analyst on Twitter, cautioned:
“$BTC found support at the yearly open and is now rejecting from the breaker I wanted to short at, ended up being impatient and shorting lower. Above the breaker, BTC looks good for $4200-$4400. If we reject and lose $3700 I wouldn’t want to be long anything.”
As it is, Facebook founder Mark Zuckerberg suggested they might create their own digital asset on the social media platform.