Bitcoin Almost Slips During Weekly Close
You may not have realized it, but Bitcoin (BTC) just closed its weekly candle. Despite the fact that BTC tapped $9,100 this week, the cryptocurrency closes this week’s candle rather weak. As pointed out by analyst Joe McCann, for the first time in four-odd weeks, BTC’s upward momentum has slowed dramatically, with the recently-closed candle looking rather skimpy. Or in other words, “the weekly chart [is] looking at bit out of gas for Bitcoin.”
What’s equally as harrowing is that there has been a large drop off in market volumes, signifying that bulls aren’t ready to pick up the slack, and shows signs of market indecisiveness. But more importantly, the weekly candle has taken the form of a Doji, a special candle formation that is marked by a skinny body (similar open and close price) and long wicks, meaning that the asset in question traded in a large range. Dojis often signifies the end of a trend. And with this Doji being long-legged, some are sure that the six-week bull trend that Bitcoin has experienced is coming to an end. As McCann suggests, there “may be a down week ahead.”
There is hope, however. As trader Jacob Canfield remarks, the Doji, which he takes a step further in saying that it is an “Evening Star”, shows “lots of indecision in this market.” But, Canfield points out that if bulls manage to reclaim $8,750, closing above it on medium-term time frames, he would be inclined to suggest a move to $10,000 and beyond. And even if BTC manages to establish a range from here, he expects for altcoins to break out. So, as long as Bitcoin manages to hold above $8,200, the cryptocurrency market isn’t entirely bearish.
And, as analyst Crypto Krillin recently noted, if Bitcoin is to fulfill its “usual blow-off top before a major correction”, $9,700 and beyond is still in play. He is suggesting that Bitcoin can break out of the ascending channel it is currently trading in, and then rally all the way to $9,750 — a key historical level that acted as resistance in mid-2018.
The reason why that Krillin expects for one leg higher is that when Bitcoin’s chart last looked as it did now, there was one final wick to the upside, which is something that has yet to materialize in BTC’s current price action. If historical precedent is to be followed to a tee, Bitcoin may break above Krillin’s ascending channel, tap $9,750, and then collapse lower in a short-term correction event.
Photo by Andrew Neel on Unsplash
