This ‘biblical’ Bitcoin pattern suggests BTC price can rise 30% by October

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Bitcoin (BTC) may be down 70% from its November 2021 peak, but its rally over the past three weeks is raising the possibility of further upside in Q3.

Bitcoin Eyes 30% Price Rally

At the core of the bullish logic is a technical pattern known as the “Adam-and-Eve Double Bottom”.

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Specifically, the formation appears when the price makes two down and recovery cycles. The first circle, called “Adam”, has a pointed plane while the second, called “Eve”, is round in shape. Also, the peaks of both the cycles form a common resistance line.

With an increase in trading volume, the Adam-and-Eve pattern resolves after the price breaks above the resistance line.

As a rule of technical analysis, the breakout target usually occurs at a length equal to the maximum distance between the pattern’s lowest point and the resistance line.

BTC/USD four-hour price chart consisting of an Adam and Eve pattern. Source: TradingView

Looking at the technical details, BTC/USD is nearing an Adam-and-Even pattern breakout. Suppose the price closes above the resistance line of the structure. Then, there will be more chances of it continuing the rally towards $28,000-$28,500.

This equates to a rally of over 30% in Q3/2022 when measured from current price levels.

Conflicting Price Signals $16K . targets

However, on the larger time frame, the Adam-and-Even bullish structure appears to be in conflict with another technical setup that suggests more pain for Bitcoin in the coming days.

Called an “ascending triangle”, a continuation pattern is formed when price consolidates inside a horizontal trendline resistance and rising trendline support, followed by a sharp move higher or lower.

RELATED: Bitcoin Price Forms Best Weekly Candle Since March Despite New DXY Peak

Interestingly, it appears to be forming on the daily-candle chart following bitcoin’s downtrend, indicating a higher upside is likely as the price meets overhead resistance, as shown in the chart below. .

BTC/USD daily price chart is characterized by an ascending triangle pattern. Source: TradingView

A bearish outlook for an ascending triangle looks to be in the $16,000-$20,000 range, depending on the breakdown point.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.