Trade Bitcoin Trading

Reversal BTC USD Patterns

These patterns are formed after the btcusd market has had an extended move up or down and the bitcoin price reaches a strong resistance/support respectively.

When bitcoin price gets to such a point it starts and begins to form a pattern. Since these formations are frequently formed it's easy to spot them once you learn how & begin using them. There are 4 types:

  • Double Tops
  • Double Bottom
  • Head & shoulders
  • Reverse Head and shoulders

This learn bitcoin tutorial will only cover double tops and bottoms, for the other 2, read this other article: head & shoulders & reverse head and shoulders

Double Top

This is a reversal bitcoin pattern that forms after an extended upwards trend. As its name implies, this formation is made up of two consecutive peaks which are roughly equal, with a moderate trough in between.

This setup is regarded complete once bitcoin price makes second peak & then penetrates lowest point between highs, called the neck-line. The sell cryptocurrency signal from this formation occurs when the bitcoin market breaks below the neck line.

In Bitcoin Crypto, this formation is used as an early signal that the bullish bitcoin trend is about to turn and reverse. However, it's only confirmed once the neck-line is broken and the btcusd market goes below neck-line. Neck line is just another name for the last support level formed on the Bitcoin chart.

Summary:

  • Forms after an extended move upward
  • This formation shows that there will be a reversal in btcusd cryptocurrency market
  • We sell when bitcoin cryptocurrency price breaks-out below the neckline point: see below for an explanation.

Double Tops candles cryptocurrency Chart pattern - Trading Reversal BTC USD Chart Setups - Double Tops BTCUSD Pattern

The double tops look like an M-Shape, the best reversal crypto currency signal is where the second top is lower than the first one such as illustrated below, this means that the reversal setup can be confirmed by drawing a downwards bitcoin crypto currency trend line like as shown below. If one opens a sell crypto signal the stop loss order will be placed just above this downward bitcoin trend-line.

Double Tops On Bitcoin Chart Drawing a Downward Trend-Line - Trading Reversal Crypto Chart Setups

M Shaped

Double Bottoms

This is a reversal bitcoin pattern that forms after an extended downward trend. It's made up of 2 consecutive troughs that are roughly equal, with a moderate peak in between.

This setup is regarded complete once bitcoin price makes second low & then penetrates the highest point between lows, known as the neck-line. The buy indication from this bottoming out signal occurs when the btcusd cryptocurrency market breaks the neckline to the up side.

In BTCUSD Crypto, this formation is an early signal that the bearish bitcoin trend is about to turn and reverse. It's only considered complete/confirmed once the neckline is broken. In this formation the neck-line is the resistance level for the bitcoin crypto price. Once this resistance is broken the btcusd cryptocurrency market will move upward.

Summary:

  • Forms after an extended move downwards
  • This formation shows that there will be a reversal in btcusd cryptocurrency market
  • We buy when bitcoin price breaks above the neckline point: see below for an explanation.

Reversal Bitcoin Setups: Double Tops and Double Bottoms - Trading Reversal Bitcoin Chart Setups

The double bottoms pattern look like a W Shape, the best reversal crypto currency signal is where the second bottom is higher than the first one like is shown below, this means that the reversal setup can be confirmed by drawing an up-wards bitcoin crypto currency trend line like as shown below. If a trader opens a buy crypto signal the stop loss will be set just below this upwards btcusd crypto trend-line.

Double Bottoms On Bitcoin Chart Drawing an Upward Trend-Line - Trading Reversal Pattern Setups

W Shaped

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