After $82,000 Frustration, Double Bottom 'Stirring'...Bitcoin (BTC), $65,000 Decisive Point

▲ Bitcoin (BTC)

A diagnosis has emerged that Bitcoin (Bitcoin, BTC) is creating an unusual double bottom signal that could end a downtrend that has lasted for several months. The founder of Bollinger Bands pointed out that even amid a strong downtrend that broke several bullish signals, a breakthrough of $65,000 could be a watershed moment for a trend reversal.

According to TheStreet, a cryptocurrency-focused media outlet, on July 6 (local time), American financial analyst and trader John Bollinger stated that a 'W'-shaped double bottom structure is forming on Bitcoin's daily chart. A double bottom typically appears at the end of a downtrend and is used as a technical signal to assess the possibility of weakening selling pressure. Bollinger said, "Bitcoin has seen several bullish signals break down and has shown the strength of the downtrend," adding, "Will this 'W' be a trend-breaking structure?"

Bitcoin surpassed $62,000 on July 2 after U.S. employment figures significantly fell short of market expectations. New jobs in the U.S. economy last month amounted to only 57,000, and the unemployment rate remained at 4.2%. The number of unemployed individuals was tallied at 7.1 million.

What Bollinger highlighted was the self-similar structure of this double bottom. He explained, "The 'W' structure forming in Bitcoin shows a perfect self-similar form," adding, "There are small 'w's at the bottom and small 'm's at the top." This means that smaller structures of similar shape are repeating within the larger price structure.

This structure emerged as Bitcoin experienced successive sharp declines after failing to recover to $82,000 in May. Each time selling pressure continued, the price was pushed to the lower Bollinger Band, and a three-stage bottom structure was formed. On the weekly chart, Bollinger analyzed that the entire daily correction is creating the second declining segment of a larger 'W' structure.

Bollinger suggested that breaking through $65,000 is a condition to confirm the completion of the double bottom and a significant trend reversal. Bollinger's analysis is that Bitcoin must surpass this price level to break the downward pressure that has continued for several months.

[Article Key Summary]

-John Bollinger analyzed that a 'W'-shaped double bottom structure, which can appear at the end of a downtrend, is forming on Bitcoin's daily chart.

-This structure exhibits a self-similar form with small 'w's and 'm's repeating within a larger 'W' and was formed after Bitcoin failed to recover to $82,000 in May.

-Bollinger suggested that Bitcoin must break through $65,000 to confirm the completion of the double bottom and a significant trend reversal.

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