Crypto analyst Christopher Inks suggests the emergence of a bullish Adam and Eve double bottom pattern in Bitcoin's value. This pattern, formed on the BTC/USD 1-hour chart, indicates a potential upswing in price. Inks identifies a crucial neckline at $67,000 and projects a target of $73,000 if the neckline is breached. Supporting technical indicators include rising volume, a neutral RSI, and a bullish Stochastic RSI, although overbought conditions may lead to a short-term retracement.
Technical Analysis Suggests Bullish Price Action for Bitcoin
Renowned crypto analyst Christopher Inks has identified a potential bullish Adam and Eve double bottom pattern in the value of Bitcoin, based on observations made on the BTC/USD 1-hour chart. This pattern, characterized by two distinct lows and a peak in between, could have significant implications for the short-term trajectory of Bitcoin's price.
The initial low, or "Adam," exhibits a sharp V-shaped drop followed by a rapid recovery, while the subsequent low, or "Eve," has a more rounded bottom, indicating a more gradual recovery. The neckline of the pattern, marked by a horizontal yellow line, is currently at $67,000.
According to Inks, a decisive breakout above this neckline would strengthen the credibility of the pattern and signal an impending bullish reversal. The target price for this pattern, measured from the neckline to the lowest point of the Adam trough, is approximately $73,000, a gain of 8.88% from the current price.
Supporting the validity of this pattern are several technical indicators embedded in the chart. The volume profile shows a significant spike at the formation of the Adam bottom, followed by a more gradual increase during the Eve formation, supporting the bullish sentiment.
The Relative Strength Index (RSI), which measures the magnitude and direction of price movements, is currently at 47, indicating a neutral market sentiment. However, the Stochastic RSI, which combines stochastic oscillators with the RSI, indicates strong upward momentum, with a reading above 95 out of 100. This suggests a possible short-term retracement due to overbought conditions.
Another notable observation is the oversold crossover in the Stochastic RSI, which typically precedes a price correction. However, the overall bullish sentiment conveyed by the Adam and Eve pattern suggests a positive outlook.
If Bitcoin's price breaks above $67,000 and closes an hourly candle above this level, bulls could potentially target the record-breaking high of $73,780. As of the time of this analysis, Bitcoin was trading at approximately $63,571.
