The post Double-Bottom Trend: What It Means for Bitcoin appeared on BitcoinEthereumNews.com.

Bitcoin’s (BTC) recent double-bottom pattern hints at potential recovery amid volatile market conditions. A weaker dollar and potential quantitative easing could create favorable conditions for crypto market growth. Crypto influencer Lark Davis is weighing in on the possible implications of Bitcoin’s recent rebound, which is gaining traction amid volatile market movements. In his most recent YouTube livestream, Davis discussed general market dynamics and highlighted important trends and elements influencing the path of Bitcoin. From technical pattern talks to macroeconomic issues, his research offers investors negotiating these uncertain times important background. How the 50-Day EMA Impacts Bitcoin Trends  Starting with the price action of Bitcoin, Lark Davis first discussed the relevance of the recent dip and eventual comeback. Touching levels last seen in late December, the movement of the cryptocurrency nearly exactly reflected a double-bottom pattern. If this pattern persists, Davis stated, “We could potentially witness a classic rebound.” He advised viewers against too early exuberance, though, pointing out that market behavior—especially shaped by U.S. trading hours—may still affect results. Source: Lark davis on Youtube Key resistance and support levels are still very important; the $92,000 mark is a necessary line in the sand. “If daily candles close below this level, it opens the door to further declines, maybe targeting $85,000 or less,” Davis says. Additionally underlined by him is the relevance of the 50-day exponential moving average (EMA) as a possible indicator of upward momentum. How Dollar Strength and QE Influence Crypto Markets  Davis explored the effects of macroeconomic variables, especially the value of the U.S. dollar. For risk assets like Bitcoin, a strong dollar usually means difficulties; recent swings in the Dollar Index have added additional strain. “Trump’s prior presidency leaned toward a weaker dollar policy,” Davis said, implying that a possible change in leadership could bring good conditions…

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Filed under: News - @ January 11, 2025 7:09 pm