This ‘biblical’ Bitcoin pattern suggests that the BTC price may rise by 30% by October
Bitcoin (BTC) may be down 70% from its peak in November 2021, but the decline in the last three weeks increases the possibility of more upside in the third quarter.
Bitcoin eyes 30% price rally
The core of the bullish argument is a technical pattern called the “Adam-and-Eve double bottom”.
In particular, the structure is shown when the price forms two bottom-and-recovery cycles. The first cycle, called “Adam”, has a pointed bottom, while the second, called “Eve”, is round-shaped. In addition, the peaks of both cycles form a common line of resistance.
The Adam-and-Eve pattern loosens after the price breaks over the resistance line, accompanied by an increase in trading volume.
As a rule for technical analysis, the target of the eruption typically comes in a length equal to the maximum distance between the lowest point of the pattern and the line of resistance.
Given the technical descriptions, BTC / USD has approached an Adam-and-Even pattern outbreak. Assume that the price closes above the structure’s resistance line. Then the probability of continuing the rally against $ 28,000- $ 28,500 will be higher.
This amounts to over 30% rally in Q3 / 2022 measured from the current price level.
Conflicting price signal target $ 16K
In larger time frames, however, the bullish Adam-and-Even structure appears to conflict with another technical setup that suggests more pain for Bitcoin in the days ahead.
Called the “rising triangle”, the continuation pattern is formed when the price consolidates within a horizontal trend line resistance and rising trend line support, after a sharp movement higher or lower.
Related: Bitcoin price builds the best weekly light since March despite new DXY peak
Interestingly, it appears to form on the daily candlestick chart following Bitcoin’s downward trend, suggesting that more downsides are likely as the price meets overhead resistance, as shown in the chart below.
The rising triangle’s bearish scenario sees the $ 16,000- $ 20,000 range depending on the point of collapse.
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