Bitcoin's Double Bottom Pattern Tests $80K Resistance
Jurrien Timmer, director of global macro at Fidelity, has been monitoring Bitcoin's price action closely. He notes that the leading cryptocurrency is currently testing resistance around the $80,000 mark.
Timmer suggests that a decisive break above this level could confirm a 'double bottom' pattern, which is often seen as a bullish reversal signal.
The double bottom pattern forms when the price tests a support level twice, forming a 'W' shape. A breakout above the middle peak (the neckline) is seen as confirmation that selling pressure is exhausting and buyers are gaining control.
Timmer also references the power law curve, which maps Bitcoin's long-term price growth against time. According to this model, Bitcoin's recent dip to the lower boundary suggests that the asset is trading at a valuation that has historically marked cycle bottoms.