Bitcoin forms bullish double-bottom pattern, and Avalanche flips dog coins

For the second time in four days, Bitcoin has bounced off support at US$55,600, forming a bullish double-bottom pattern that could see the range-bound crypto make another attempt to break back above US$60,000.

At lunchtime (Sydney time), BTC was changing hands for US$56,627, down 2.1 per cent from 24 hours ago.

Bitcoin double bottom — Bitcoin trading since Friday. (Stockhead/Tradingview)

“Seeing a lot of #bearish sentiment today,” posted crypto trader Palms. “I think the bottom is in. Lots of people calling for a test of $53k, let’s keep an eye on which way this thing breaks. #Bullish if we can break the upper trendline and close daily above $61.5k.”

Crypto analyst Bitcoin Charts also spotted the double-bottom, posting that there “1H/4H bullish divergences to support the argument for a continued bounce.

“Technical target: 64.5k.”

Ethereum was changing hands for US$4,145 after dropping as low as just above US$4,000 around 8.30am AEDT, about the same time as Bitcoin’s low.

Crypto market down 4.7%

Overall the crypto market was at US$2.65 trillion, down 4.7 per cent from yesterday.

All of the top 20 coins were down from yesterday except for Avalanche, up slightly at US$135, and the Crypto.com Coin, which had gained 7.5 per cent to US75.7c.

Avalanche enters top 10

Avalanche is up 43 per cent in the past seven days, and has now jumped ahead of Dogecoin as the No. 10 crypto, with a market cap of US$30 billion. (DOGE is No. 11 at $29 billion, followed by Shiba Inu at $23.8 billion.).

It’s been boosted by Ethereum’s high gas fees that have made transactions unaffordable for everyday users, leading to some projects to switch to Avalanche’s Ethereum-compatible network.

Voyager Token was the biggest gainer in the top 100, up 43.4 per cent to US$5.29.

The No. 84 crypto, VGX is used to reward users within the Voyager crypto brokerage ecosystem.

Animoca Brands’ Sandbox token was up 19.4 per cent to US$4.93, and had hit another all-time high at US$5.24 earlier this morning.

SAND tokens are up more than sixfold from a month ago, buoyed by a general bullishness for metaverse tokens following Facebook’s renaming. The Sandbox coin powers a Minecraft-style “sandbox” blockchain game.

SAND token chart for the year (Coinmarketcap)

Elrond had also hit another all-time high, of US$497.

On the flip side, Oasis Network (ROSE) was the biggest loser in the top 100, falling 12.4 per cent to US35.9c, although that still leaves it up 72 per cent for the week.