Bitcoin price analysis: Inverted double heads-and-shoulders pattern spotted

There was slight recovery from the lows traded last week. The weekend trading saw Bitcoin form a base support slightly above $3,200. A correction from this level stepped above $3,400 on Sunday 9. Similarly, there was more upside correction that touched shoulders with $3,600 before Bitcoin bears took over once again.

Bitcoin price is currently changing at $3,466 while holding on to both the 50 SMA and the 100 SMA (hourly range) support. The initial support for Bitcoin lies at $3,400 and the second support target is at $3,300. The previous lows around $3,200 is the major support zone (currently representing a possible bottom).

An inverted double heads-and-shoulders pattern is formed on the same 1-hour range. The bullish pattern is lagging the reaction, although the bears are still holding the bulls hostage. Bitcoin must break above the short-term resistance at $3,500 and corrected above $3,500 in order to come out of the bear range. This will bring $4,000 into sight as the buyers plan the next move to the medium-term resistance level at $4,400.

Elsewhere, Bobby Lee believes that we are yet to arrive at the bottom for Bitcoin price. In fact, he predicts that Bitcoin will hit a low around $2,500 before it begins to make a significant rebound. In spite of his comment, Lee is known to be one of the popular Bitcoin bulls.

“I suspect there will be a lot of buy orders and support at both $3,000 and $2,500 mark. We will see!” Bobby Lee wrote.

Many experts and top analysts like Tom Lee had predicted that Bitcoin will reverse the 2018 bear trend and arrive at significant levels before the end of the year. However, as the situation stands in the market, it is likely that those levels are simply a mirage. Lee further says that Bitcoin may “bottom out in Jan 2019.”

“From then all-time high of USD $1,200 in Dec 2013, for next 13 months, Bitcoin went down by over 87% to bottom out at just $150 in January 2015. Rock bottom! All Hope Lost?”

He continued:

Now from Dec 2017 high of $20,000, going down 87% would take it to $2,500. So maybe bottom out in Jan 2019?

BTC/USD 1-hour chart