After Bitcoin found the bottom at $5900, the price started to rise, breaking downtrend trendlines. BTC/USD managed to grow up to $11800 where it produced a double top and went down sharply.
The decline was stopped at the breakout point of the first downtrend trendline, while the second trendline is acting as a support. Additionally, the RSI oscillator is in the oversold condition and also finding the support at the downtrend trendline, suggesting the Bitcoin potentially reached the bottom of the current wave down.
From this point onwards BTC could continue the uptrend with the condition that the support will hold. Daily break and close below $8400 should invalidate bullish outlook and could result in a strong decline towards $4000 area.
The decline was stopped at the breakout point of the first downtrend trendline, while the second trendline is acting as a support. Additionally, the RSI oscillator is in the oversold condition and also finding the support at the downtrend trendline, suggesting the Bitcoin potentially reached the bottom of the current wave down.
From this point onwards BTC could continue the uptrend with the condition that the support will hold. Daily break and close below $8400 should invalidate bullish outlook and could result in a strong decline towards $4000 area.