Technical Analysis of Double Bottoms Bitcoin Chart Patterns

How to Interpret a Double Bottoms Bitcoin Chart Patterns

To learn how to analyze the btcusd trading market using double bottoms cryptocurrency chart patterns a trader should first of all learn the technical analysis of double bottoms cryptocurrency chart pattern explained in this tutorial.

Double Bottom Bitcoin Chart Pattern

Double bottom cryptocurrency chart pattern is a reversal cryptocurrency pattern that forms after an extended downwards cryptocurrency trend.

Double bottom cryptocurrency pattern is made up of 2 consecutive troughs that are roughly equal, with a moderate peak that is between the two troughs.

Double bottom cryptocurrency chart patterns formation is considered complete once bitcoin price makes the second low and then penetrates the highest point between the lows, called the neckline.

The buy cryptocurrency signal from this double bottoms market bottoming out cryptocurrency signal occurs when the btcusd market breaks-out the neckline to the upside.

In Bitcoin, the double bottoms cryptocurrency chart pattern is an early warning cryptocurrency signal that the bearish Bitcoin trend is about to reverse.

Double Bottoms Bitcoin Chart Pattern is only considered complete/confirmed once the neckline is broken. In this double bottoms cryptocurrency chart patterns formation the neckline is the resistance level for the bitcoin price. Once this resistance is broken the btcusd trading market will move up.

Summary:

• Double bottom cryptocurrency chart pattern forms after an extended move downwards bitcoin downward trend
• This Double bottom cryptocurrency pattern formation indicates that there will be a reversal in btcusd trading market
• We buy when bitcoin price breaks-out above the neckline: as explained on the cryptocurrency trading example illustrated below.

Analysis of Double Bottoms Crypto Chart Patterns?

The double bottoms cryptocurrency chart pattern look like a W Shape cryptocurrency chart pattern, the best reversal btcusd signal is where the second bottom is higher than the first bottom as displayed & shown below.

This means that the reversal cryptocurrency signal from the double bottom cryptocurrency chart pattern can be confirmed by drawing an upward bitcoin trend line as shown below. If a trader opens a buy cryptocurrency signal the stop loss will be placed just below this upward bitcoin trend line.

How to Trade the Double Bottoms Cryptocurrency Pattern - How to Analyze a Double Bottoms Bitcoin Chart Patterns