A kind a double bottom pattern predicts Bitcoin gaining up to $7800

After the Bitcoin market fell below $7300, new support was found at levels close to the $7025-$7000 mark, where bulls finally seized the initiative, taking advantage of the sell-off in the equity markets and massive sales in the European currency market.

Yesterday's trading session was negative for the first cryptocurrency market - it was not unexpected as the sentiment in the equity markets improved, and traders moved out of digital currencies and returned to traditional centralized markets. Nevertheless, those trader played their necessary role.

Today, Bitcoin price continued to recover and gained to $7521 dollars. The emerging technical picture suggests that, perhaps, Bitcoin will test the $7800 level in the days to come.

However, there should be a significant surge in volume in the coming trading sessions in order to exceeded the mark of $7800 and test the short-term resistance level of $8500. The recent rally from $7020 up to $7500 was amid a weak volume inflow approximately 10,000 Bitcoins were purchased, which is significantly lower than the volume seen in previous corrective pullbacks. This is a alarming sign, since the growth discussed is not confirmed by a necessary increase in trading volume.

If Bitcoin returns down to $7300 and moves again lower to the region of $7020, further decline to a lower level of $6000 will be unavoidable.

FortFS