How to Read Reversal Bitcoin Chart Patterns for Beginner Traders

The common reversal bitcoin chart patterns used to trade bitcoin that beginner bitcoin trades should know are explained below.

Reversal Bitcoin Chart Patterns

The commonly used bitcoin reversal chart patterns are:

Double Tops Reversal Chart Pattern

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

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

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

Double Bottoms Reversal Chart Pattern

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

Double bottom bitcoin pattern is a bullish bitcoin pattern that forms when bitcoin trading price reaches a support zone.

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

Head and Shoulders Reversal Chart Pattern

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

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

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

Reverse Head & Shoulders Reversal Chart Pattern

Reverse Head and Shoulders pattern is a bullish reversal bitcoin pattern that forms after a downward bitcoin trend.

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

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

How to Read Reversal Bitcoin Chart Patterns for Beginner Traders