BTC Price Prediction: Potential Double Bottom Pattern Suggests Destination Reaching $112,000
Bitcoin exhibits a resilient recovery, trading close to $110,000 as of now, following a weekend dip to $106,600. This rebound is attributed to a bullish double bottom pattern, with a notable neckline around the $109,000 mark, according to analyst Ibrahim Cosar's analysis.
The double bottom pattern, indicative of weakening selling pressure and a regaining control by buyers, is characterized by two low points at similar levels with a peak between them. The first low occurred on May 23 at $106,800, followed by a second low on May 25 at $106,600.
If the $109,000 level holds as support, Bitcoin could potentially reach prices beyond $112,000, as suggested by these analysts. This supposition is based on the fact that double bottoms signify a decrease in selling pressure and a return of buying momentum.
Meanwhile, fellow analyst Ali Martinez shares similar optimistic views, predicting Bitcoin breaking out from its recent downtrend and targeting $110,000 or higher levels.
In the recent market fluctuations, significant liquidation events occurred on Binance, clearing over-leveraged long positions worth approximately $185 million. These liquidation waves, triggered by Bitcoin's price volatility, removed speculative traders from the market.
The price dips, however, were utilized as opportunities by long-term holders to accumulate more Bitcoin. As a result, the long-term holder realized capitalization surged past $28 billion during the market stress. This accumulation suggests faith in Bitcoin's future value, with long-term holders interpreting volatility as a chance to expand their positions.
Resilience displayed by long-term holders contrasts with the actions of short-term traders during these volatile periods. While the latter faced forced selling, the former strengthened their positions strategically. This accumulation, coupled with cleared speculative positions, could set the stage for Bitcoin's next move higher.
In the present, Bitcoin trades at $109,874, representing a 2.3% daily increase, and maintains its position above the crucial $109,000 support zone.
The double bottom pattern, which signifies a decrease in selling pressure and a return of buying momentum in the cryptocurrency market, is currently showing strength in Bitcoin, with the recent low points occurring at around $106,800 and $106,600. This resilience, combined with the cleared speculative positions and long-term holder accumulation, suggests that Bitcoin could potentially reach prices beyond $112,000, making it an attractive option for investors in the finance sector.
