Yesterday, a friend asked me if the current form of Bitcoin is a "flat bottom"?

Those who have studied my "Trader's Logic" know the concept of a "flat bottom." Indeed, Bitcoin has recently shown a wave of flat bottom formation. A flat bottom means that the price has not fallen below the bottom range but has been moving sideways at the lowest price level, then starts to rise (as shown in the box in the image below).

During a bull market, a flat bottom usually forms after a decline, created by a combination of a bearish and a bullish candlestick, maintaining the lowest price level before starting to rise. From the 4-hour chart, Bitcoin has tested the flat bottom price level three times, with the lowest point around $106,500. I mentioned in Monday's video that if Bitcoin dips back to this level, it might be worth considering opening a long position.

Currently, the support below this level doesn't seem to pose much of a problem during the week’s trading. I have outlined the recent price range (in the yellow box in the image below), which resembles a somewhat irregular box. The top price is quite irregular, but the reliability of the bottom support is relatively high. When the price falls back again to the 0.618 position, which is the lower edge of the oscillation box, Bitcoin starts to rise again. If you took a long position after watching my video on Monday, here are a few levels to consider for taking profits or stopping losses:

1⃣️ Around $109,000: This is where the price started to drop after the first rebound, as well as a continuation platform during the decline, with three four-hour stays at the four-hour level, and a potential resistance might emerge upon further rise.

2⃣️ Around $110,000: This is the second M-top position of the small M-top.

3⃣️ Near the previous high: If the second peak is lower than the first, it indicates that the bulls are becoming complacent, so one cannot fully rely on the highest price for taking profits.