- Summary:
- Strong bounce in the Bitcoin price as the market forms a double bottom on the lower timeframes. $55,000 and beyond is not out of the question.
Bitcoin price is on a rollercoaster lately. It dropped over 20% from the highs after the U.S. Treasury Secretary, Janet Yellen, said that Bitcoin is nothing but a bubble. Fear made some weak hands selling, and the price of Bitcoin collapsed, triggering a similar move in Ethereum and all other altcoins. Fear of regulation still represents one of the major threats to cryptocurrencies, as many voices argue that they are used only for illicit transactions.
The market, however, found support at the lows in the $46,000 area. Right towards the close of the North American session yesterday, Square announced that it invested another $170 million in Bitcoin. The thing is that it even revealed the number of coins bought, which made it easier to calculate the approximate price that Square paid for each coin. That is, around $52,000. At that moment, the price was at $46,000, and probably the Square news was responsible for the Bitcoin’s bounce to $52,000.
Bitcoin Price Technical Analysis
Bitcoin appears to have formed a double bottom pattern. The price already broke the neckline and now gets ready for the measured move. We should not be surprised to see a move above $55,000, and once there, another attempt at the highs. However, Bitcoin price is extremely volatile and the double bottom formed on the lower timeframes. Therefore, anything is possible with only a few days left until the end of the trading month.
Bitcoin Price Forecast
