Trade Bitcoin Trading

How Can I Differentiate a Double Bottom from a Double Top?

Spot and Trade Double Bottom or Double Top on Bitcoin Charts.

A double tops pattern in Bitcoin charting manifests as an 'M' shape and materializes at market peaks, hence its nomenclature. This cryptocurrency chart pattern signals a downturn in Bitcoin's price within the market. Once this double top pattern is validated, the BTCUSD market is then considered bearish: thus, the double top is a bearish signal.

A double bottoms bitcoin chart pattern has a W shape and it occurs at a market bottom therefore its name double bottom cryptocurrency chart pattern and it signals a bullish bitcoin price reversal in the btcusd market. Once a double bottom cryptocurrency chart pattern is confirmed then the btcusd market will be regarded to be bullish, henceforth a double bottom is bullish.

To recognize double top and double bottom chart patterns in cryptocurrency trading, reference examples outlined below.

Double Top Bitcoin Pattern

The double tops crypto chart pattern is a crypto reversal setup that happens after the crypto trend has been going up for a while. As the name suggests, this double tops cryptocurrency setup has 2 peaks that are about the same height, with a dip in the middle.

This double tops cryptocurrency pattern formation is considered complete once bitcoin price makes second peak and then penetrates lowest point between highs, called the neckline. The sell crypto signal from this double top cryptocurrency pattern setup formation formation occurs when the bitcoin market breaks below the neck-line.

In Bitcoin Crypto, this double tops crypto setup setup formation is used as a early signal that the bullish Bitcoin trend is about to turn and reverse. However, double top crypto pattern setup formation is only confirmed once the neckline is broken and the bitcoin market goes below neck-line. Neck line is just another term for the last support zone formed on the chart.

Summary:

  • Double tops bitcoin pattern setup formation forms after an extended move upwards
  • This double tops cryptocurrency pattern formation demonstrates that there will be a reversal in btcusd market
  • We sell when bitcoin crypto price breaks out below the neckline point: see below for an explanation.

How Can I Differentiate Double Bottom from Double Top?

Double Top in Bitcoin: Telling It Apart from a Double Bottom

Double Bottom Bitcoin Pattern

The double bottom pattern on cryptocurrency charts is a reversal formation that occurs after an extended downward trend. It consists of two similar troughs separated by a moderate peak between them.

This double bottom cryptocurrency pattern formation is considered 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 and happens when the bitcoin cryptocurrency market breaks the neckline to the up-side.

In BTCUSD Crypto, this double bottoms cryptocurrency pattern setup formation is an early signal that the bearish BTC/USD Crypto trend is about to turn and reverse. It's only considered complete/confirmed once the neckline is broken. In this double bottoms cryptocurrency setup setup formation the neckline is the resistance level for the bitcoin price. Once this resistance is breached and broken the bitcoin market will move upward.

Summary:

  • Double bottom btcusd crypto setup forms after an extended move downwards
  • This Double bottom cryptocurrency pattern formation demonstrates that there will be a reversal in btcusd market
  • We buy when btcusd crypto price breaks above the neck-line point: see below for an explanation.

How Can I Differentiate a Double Bottom from a Double Top?

How Can I Differentiate a Double Bottom from a Double Tops?

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