Bitcoin Forms Double Bottom Pattern And Rebounds To $35K

• Bitcoin is up by 5.5% today as the cryptocurrency returns to the 35K resistance.
  
  
• The cryptocurrency continues to hold support at 30K this weekend after forming a double bottom pattern.
  
  
• Bitcoin mining difficulty is set to undergo the most significant difficulty adjustment in its history among the mining fiasco in China.
  
  

Bitcoin had another interesting weekend of trading in which the cryptocurrency fell from $35,000 resistance and ended up heading near $30,000 again. Luckily, the buyers regrouped and bought all the dips beneath $31,000 and allowed the cryptocurrency to close Saturday’s candle above $31,500.
Despite dipping beneath $30,000 in June, Bitcoin has still yet to close a daily candle beneath $31,500. This suggests that buyers are willing and able to buy any discounted coins as the market heads anywhere near $30,000. The weekend closing candle above $31,500 also allowed Bitcoin to create a double-bottom pattern, potentially indicating that bearish pressure within the market might be fading.

Today, BTC is now up 5% as it battles resistance around $35,000 and the 20-day MA.

The talk of the industry this week is primarily focused on the mining fiasco that has been developing over the past few weeks. Recently, Chinese authorities announced that mining BTC in their country would be illegal. This forced BTC miners within China to close down their operations and relocate elsewhere.

Bitcoin Price Analysis

What has been going on?

On the 4HR chart, we can see that BTC did create a new lower 4-hour closing candle over the weekend but quickly rebounded from there. After bouncing, BTC established a short-term rising ascending price channel that it is currently trading within.

It reached resistance at $35,000 today, provided by a short-term bearish .5 Fib Retracement level, and has started to retrace from this resistance.

Bitcoin price short-term prediction: NEUTRAL

Bitcoin still remains neutral in the short-term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a closing daily candle beneath $30,000 would be required to turn the market bearish.

If the sellers do push lower, the first support lies at $34,000. This is followed by support at $33,330 (.382 Fib Retracement), $33,000, $32,725 (.5 Fib Retracement), and $31,120 (.618 Fib Retracement).

Beneath $32,000, additional support lies at $31,500, $31,155 (long term .886 Fib Retracement), $31,000, and $30,000.

Where Is The Resistance Toward The Upside?

On the other side, the first strong resistance lies at $35,000 (short-term bearish .5 Fib Retracement & 20-day MA). This is followed by $36,000, $36,515 (bearish .618 Fib Retracement), $37,000, and $37,425 (1.414 Fib Extension).

If the buyers continue to climb above $38,000, resistance lies at $38,620 (bearish .786 Fib Retracement), $38,000, $40,000, and $40,558 (bearish .382 Fib Retracement).