Bitcoin Triple Bottom

The Bitcoin price has now been front-run at the $20k psychological support level three times, bouncing each time back over $21k. Ethereum has also not yet broken the $1,000 level.

On the four hour chart, Bitcoin is currently printing a bullish engulfing candle – a sign buyers are defending that level. In the short term Bitcoin may move back to the 21 EMA at just over $22,000.

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Bitcoin Triple Bottom

Typically a triple bottom on a higher time frame (HTF) like a daily or weekly chart would be more valid for technical analysis.

Market bottoms can take time to play out and with little price action at this level, alongside extreme fear, uncertainty and doubt (FUD) some traders will still be waiting on the sidelines.

Only one weekly candle exists since Bitcoin broke down below $26,000. The current weekly candle opened June 13th at $26,574 on Binance and the next will open June 20th.

Bitcoin price weekly chart

Currently the Bitcoin price is down 20% this week, but up almost 4% on the 4h chart as a result of that bullish engulfing candle and low timeframe triple bottom.

The 21 week EMA is at $35,700 and could be a price target if Bitcoin does put in a double bottom or triple bottom on a HTF chart.

The 200 week SMA (simple moving average) is at $22,350 – that has acted as support for Bitcoin for years. Bitcoin has wicked below it before, as it did during the 2020 covid crash, but not closed weekly candles below it.

If Bitcoin closes under it this weekend, it could be a short signal for some traders, and a sell sign for some long term holders. However if Bitcoin closes above it having been front-run near $20k three times, it would be a buy signal for many.

After some of the most bearish price action Bitcoin has ever seen, this week’s candle close will be one of the most closely watched in the history of cryptocurrency.

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