Over the past few days, Bitcoin (BTC) has finally started to show some positive signs, with its price holding above key support levels in the lower-$7,000s. This comes after a rapid capitulation to $6,600 from above $8,000, seen in late November.
While the cryptocurrency remains under the resistance of the $7,800 level, analysts are starting to show signs that a bullish reversal is in the works.
Popular trader Jonny Moe noted that the “inverse head & shoulders” we saw last week, which predicted BTC’s move to tap $7,800 from $7,000, has turned into a bullish Adam & Eve bottoming pattern, all while the cryptocurrency has broken above a key downtrend resistance. Adam & Eve bottoms are marked by two declines, then a reversal to the upside, which it seems Bitcoin may complete in the coming days.
While Jonny remarked that there is no confirmation that the patterns will play out, the potential is “certainly there.”
The $BTC inverse head & shoulders we saw last week has turned into an Adam on a potential Adam & Eve bottom.
You could interpret the Eve as the beginning of a cup & handle continuation as well.
Both of these are still just potential, but certainly there. pic.twitter.com/8GzTvFT6BN
— Jonny Moe (@JonnyMoeTrades) December 7, 2019
Bitcoin Still Bearish?
While Jonny Moe is observing a bullish bottoming pattern, there are still a few harrowing signs.
Popular trader NebraskanGooner has been touting a Bitcoin price “fractal,” which is when the historical price pattern or direction of an asset is reflected/seen again on a different time frame and/or for a different asset.
The fractal predicted the cryptocurrency’s dramatic price drop to $6,600 weeks before it took place, and the subsequent recovery to nearly $8,000 seen a week or two back. Now, as Nebraskan recently pointed out, it shows that Bitcoin is about to fall off a precipitous cliff in the coming week or two, in a move that may bring the price of BTC to $6,200, maybe even lower. That would represent an 18% drop from current levels.
Fractal update. pic.twitter.com/4cLUco4awI
— NebraskanGooner📈 (@nebraskangooner) December 6, 2019
The same analyst also noted that Bitcoin’s weekly close last week implies that the market remains in a bearish trend. Nebraskan specifically remarked that BTC failed to break the key 99-week simple moving average and a horizontal zone of resistance, before adding that the “increased buyer volume” narrative is a clear misnomer and that the on-balance volume indicator saw a bearish retest.
Featured Image from Unsplash