the ribbing around the top, I really like how that came out, anxious to see how it looks after felting it.
full view of the bag
base of bag
Using double pointed needles, CO 8 sts. Divide so that there are 2 sts on each of 4 needles. [Although it is possible to divide using 3 needles, I recommend using 4 needles as it makes the increasing a lot easier. The increases occur before and after the first stitch of each needle.]
Join by slipping first st onto Needle 4. Pull last st over first st and move the last stitch onto the Needle 1.
Round 1: Knit [8 sts]
Round 2: *K1, M1* around [16 sts].
Round 3: Knit.
Round 4: * K1, M1, K3, M1 * around [24 sts].
Round 5: Knit.
Round 6: * K1, M1, K5, M1 * around [32 sts].
Round 7: Knit.
Round 8: * K1, M1, K7, M1 * around [40 sts].
Round 9: Knit.
Round 10: * K1, M1, K9, M1 * around [48 sts].
Continue in this manner, so that all odd rounds are knit and all even rounds have 8 stitches increased until you have 80 sts. Since you are increasing before and after the first st of each of the needles, the first st is going to "pop" up, off the knitted fabric.
After you have the required number of stitches, do a few more knit rows (I did about 3). for the sides, knit up about 5" all the way around. the last inch K2, P2. to finish off I K5, BO 30, K10, BO30, K10 (this will put the first 5 stitches on the same needle as the last 5 stitches).
do stockinette stitch (K one row, P next row) up as long as you want the handle. do this for both sets of 10 stitches. join together using kitchener stitch.
put bag in a hot wash with a small amount of detergent, pair of jeans or towel to agitate it. check every 10 minutes until desired felting has occurred.