May 14th Technical Analysis: Bitcoin

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

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.


Buy ETH with up to 50% discount! ->

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

Don’t forget to give us your 👏 !




Love podcasts or audiobooks? Learn on the go with our new app.

Sample Report: Virtual Currency & AML in the EU, UK, & US.

Nomad: a cross-chain interoperability protocol for generalized message passing

NWC Weekly Report: 21–28 February

Cryptonity; Crypto for the Community

Patents of Blockchain Technology and Future of Cryptocurrency Market

Weekly crypto market update — July 2nd, 2018

Where is Bitcoin Going in 2022?

Where is Bitcoin Going in 2022?

The Ultimate ICO Investor Cheat Sheet

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
John Carter

John Carter

More from Medium

Exhaustion of $BTC and $ETH

Why Bitcoin Cannot be Legal Tender for Major Economies (2/2)

Flipping the Coin — Bitcoin vs Ethereum

Safest Crypto Exchanges for Traders in 2022

Crypto Exchange Vault