Although Bitcoin has had a significant bounce, it's still within the long term range between the 18.5k support and 24.5k resistance.

We have warned in last week's newsletter against calling the Bitcoin bottom too early.

Zooming out shows the clearer picture around the recent move. 24.5k is the previous lower high made in August. In order for Bitcoin to reverse the downtrend since November 2021, it needs to make a higher high above the previous lower high.

Therefore, Bitcoin needs to at least reach 24.5k before we can consider this a a potential long term bottom.

If Bitcoin can retest 24.5k, it would complete the first step of a double bottom pattern and signal a long term reversal.

On the downside, 18.5k needs to hold in order for Bitcoin to avoid a larger crash. If 18.5k does break, the next support level down is around 12k which is the bear market peak in 2019 and the consolidation in the summer of 2020.

Before either of these scenarios happen, Bitcoin is technically in a sideways chop period between 18.5k and 24.5k. So exercise caution and don't jump to random predictions too quickly. Wait for the next move to be confirmed before acting.