Bitcoin Sets a Double Bottom, Equilibrium Pattern Still in Place

December 13, 2019 2:43 AM UTC

We talked about Bitcoin’s current equilibrium pattern and how it’s going to lead to a big move eventually. Bitcoin almost saw a bear break today, in fact, on some exchanges, the bears were able to break below the low by a few dollars, however, they got no continuation in any exchange.

On Binance, Bitcoin has been able to hold the low and has set a higher low at $7080 compared to $7067. This double bottom could help the bulls tremendously if they can see some continuation up to $7300 and above.

The 4-hour chart is showing some really long wicks which indicates there is a lot of bot trading activity. The bulls are trying to set an uptrend but they are getting rejected from the 26-period EMA.

The weekly chart is not doing much as the volatility of Bitcoin fades away. Bitcoin’s dominance over the market continues to rise and it’s currently at 66.7%. Shorts on Bitfinex are still extremely low while longs have just hit an all-time high.

A long squeeze is certainly possible but at the same time, the significant difference between longs and shorts could indicate that the bulls have more strength and that investors are still looking to buy Bitcoin before the upcoming Bitcoin halving in May 2020.

 

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