How to Read Bitcoin Chart Patterns for Beginner Traders

The common bitcoin chart patterns used to trade bitcoin that beginner bitcoin trades should know are explained below. These bitcoin chart pattern are grouped into reversal bitcoin patterns and continuation bitcoin trading chart patterns.

Reversal BTCUSD Trading Patterns

The commonly used bitcoin reversal chart patterns are:

Double Tops

Double tops bitcoin pattern is an M shaped 2 tops or two peaks pattern that forms on the bitcoin price chart during a bitcoin upward trend.

Double tops bitcoin chart pattern is a bearish bitcoin pattern that forms when bitcoin price reaches a resistance level.

The bitcoin price will move up & then dip slightly then turn up & move up to the top level where it had reached or slightly below this level then move down again forming what is known as a double top bitcoin trading pattern.

Double Bottoms

Double bottom bitcoin chart pattern is a W shaped two bottoms or two lows bitcoin pattern that forms on the bitcoin price chart during a bitcoin trading downwards trading trend.

Double bottom bitcoin chart pattern is a bullish bitcoin pattern that forms when bitcoin price reaches a support level.

The bitcoin price will move down in then move upwards slightly then turn downward and move down to the bottom level where it had reached or slightly above this level then move upwards again forming what is known as a double bottoms bitcoin trading chart pattern.

Head & Shoulders Bitcoin Trading Chart Pattern

Head & Shoulders chart pattern is a bearish reversal bitcoin pattern that forms after a bitcoin upward trend.

There's an initial peak which is the first shoulder then a slight dip in bitcoin price, then a second higher peak which is the head then another bitcoin price dip followed by the last peak in bitcoin price which is the second shoulder.

The lowest points between the two bitcoin price lows forms the neckline & the reversal bitcoin signal from this head & shoulders pattern is confirmed once bitcoin price moves below this neckline.

Reverse Head and Shoulders BTCUSD Trading Chart Pattern

Reverse Head & Shoulders chart pattern is a bullish reversal bitcoin pattern that forms after a bitcoin trading downwards trading trend.

There's an initial dip which is the first inverse shoulder then a slight peak in the bitcoin price, then a second lower dip which is the reverse head then another bitcoin price peak followed by the last bitcoin price dip in bitcoin price which is the second inverse shoulder.

The highest points between the two bitcoin price peaks forms the neckline & the reversal bitcoin signal from this reverse head & shoulders pattern is confirmed once bitcoin price moves above this neckline.

Continuation Bitcoin Chart Patterns

Continuation bitcoin chart patterns are:

Rising Wedge or Ascending Wedge

Rising wedge is a continuation bitcoin chart pattern that forms during an upward bitcoin trend & this bitcoin patterns looks like a triangle bitcoin consolidation pattern that has a rising slope that's heading upward.

Rising wedge chart pattern has rising sloping support and resistance levels and this bitcoin pattern shows that bitcoin prices keep moving higher and once bitcoin prices move out of this rising wedge bitcoin pattern the upward bitcoin trend is likely to continue.

Falling Wedge or Descending Wedge

Falling wedge is a continuation bitcoin chart pattern that forms during a downwards bitcoin trend & this bitcoin patterns looks like a triangle bitcoin consolidation pattern that has a descending slope that is moving downward.

Falling wedge pattern has descending sloping support and resistance levels & this bitcoin pattern shows that bitcoin prices keep moving lower and once bitcoin prices move out of this descending wedge bitcoin pattern the downwards bitcoin trend is likely to continue.

Bullish Pennant or Bearish Flag

Bullish Flag is a bitcoin pattern with parallel support and resistance levels that forms during a bitcoin upward trend and a bitcoin continuation signal is generated when bitcoin price moves above the bullish flag chart pattern & the upward bitcoin trend continuation signal is generated by this continuation bitcoin bullish flag pattern.

Bearish Pennant or Bearish Flag

Bearish Flag is a bitcoin pattern with parallel support and resistance levels that forms during a bitcoin downward trend and a bitcoin continuation signal is generated when bitcoin price moves below the bearish flag chart pattern & the downward bitcoin trend continuation signal is generated by this continuation bitcoin bearish flag pattern.

How to Read Bitcoin Chart Patterns for Beginner Traders