One of the most important price formations on the exchange is so-called double bottom / double peak. Traders often keep track of this formation and enter their buy/sell orders according to previous minimum/maximum.
Price levels on the levels of previous local extreme are important for technical as well as fundamental traders, where the price of asset is therefore under/over its “intrinsic value”. For long-term traders this “intrinsic value” is the most important index.
The double bottom is confirmed by the first rupture of the trend on the level of 23,6 Fibonacci line. The market often aims for the second fall to deepen the extreme. It is important to be careful on the cryptocurrency market, so always check the formation before you start to trade it.
To be continued..