Bitcoin Retest Of $41K Could Confirm The Bull Run: Analysis

A bitcoin retest of $41K could confirm the bull run that could lead the cryptocurrency higher according to Scott Melker who is a crypto trader and WOAS Podcast host explained. The crypto’s sharp rebound from $32K to about $38K confirmed the two bullish reversal indicators like the falling wedge and double bottom so let’s read more in today’s BTC news.

Starting with the Double Bottom, Mr. Melker outlined two consecutive indicators in the BTC 4-hour charts with a moderate peak in between. This structure points to a new downside rejection by the bears while its vitality goes up as the asset bounces back from another close above the previous peak level. It seems that BTC did the same thing while the rally lasted which led Mr. Melker to see another upside rally to complete the Double Bottom scenario. BTC achieved the bullish reversal target and hit the line of $34,880 as shown in the charts:

 “The pink line [stands] broken, double bottom to be confirmed with a close above. Target around 41K shown. Trading range EQ also broke, should target range highs.”

A Bitcoin retest of $41K depends on the bullish indicators and the next BTC breakout move. In retrospect, the Falling Wedge in an uptrend is only a continuation pattern that occurs once the market contracts with the structure indicating the resumption of the uptrend which means that the traders can look for other buying opportunities once the price closes above the Pattern upper trendline.

BTC did the same. The cryptocurrency closed above $36,000 which is a level of a recent history that is capping the upside gains. It pointed to the renewed buying enthusiasm above the crucial price floor which only outlines that the traders could aim for the rising wedge breakout targets to the upside. Once an asset rises by the maximum distance between the Wedge’s upper and lower trendline so in bitcoin’s case the gap is more than $11,000 wide which puts BTC on its way to $50,000.