Bitcoin price shows weakness at $50,000, but this crucial technical formation could elevate it to $60,000

Published May 14, 2021 | Updated May 14, 2021

In Brief

Bitcoin recoils from recent support at $46,000 as bulls focus on gains toward $60,000.

The formation of a double-bottom pattern could catapult BTC significantly upward.

Bitcoin price shows weakness at $50,000, but this crucial technical formation could elevate it to $60,000

Bitcoin recoils from recent support at $46,000 as bulls focus on gains toward $60,000.

The formation of a double-bottom pattern could catapult BTC significantly upward.

Bitcoin has since Wednesday stalled under around $50,000. On the downside, immense support between $46,000 and $47,000 has ensured the bearish leg does not stretch further. Meanwhile, BTC has been pivotal at $50,000, unable to make progress above this critical level.

Bitcoin’s consolidation could culminate in a massive upswing

Since the breakdown on Wednesday, the flagship cryptocurrency has not recovered as investors desired. The tug of war at $50,000 neither favors the bulls nor the bears. Therefore, the pivotal trading action will most likely last longer.

The four-hour chart brings to light a double-bottom pattern, a highly bullish formation in technical analysis. It comes into the picture after an asset hits a lower price point a couple of times. Note that there is usually a moderate price peak between the bottoms.

The double-bottom pattern is usually confirmed when the asset bounces off the bottom support level and makes its way through the previous peak. Identification of crucial support and resistance levels helps to avoid failed double-bottom patterns.

BTC/USD four-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Meanwhile, it is essential to realize that a confirmed break above $50,000 will prove that recovery toward $60,000 has potential. Moreover, holding onto support at the double-bottom pattern is key to jumpstarting the uptrend.

Short-term technical indicators continue to send mixed signals, nonetheless. The Relative Strength Index (RSI) levels at 40, showing that sideways trading may take precedence.

On the other hand, the Moving Average Convergence Divergence (MACD) has a bearish impulse, implying that losses could continue in the near term.

Bitcoin intraday levels

Spot rate: $48,920

Trend: Bearish bias

Volatility: Growing

Support: $47,000 and $46,000

Resistance: $50,000, $52,000 and $54,000

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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John Isige 1004 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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