Bitcoin (BTC / USD) Bang !!!. What are the Bitcoin candles telling us?
Bitcoin is starting to give bullish signals, you want to find out, give the post a vote and let's get started.
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Bullish Signals
Stays on a redistribution channel
Mornig Star candlestick pattern (from 2 days ago).
Yesterday Bitcoin has broken the resistance of the average of 20 daily periods and today it remains above, another good bullish sign.
Investors buying bitcoin and withdrawing it from exchanges
Dominance through the floor and begins to rise. (Warning !!! Alcoins).
Thinking that the price will continue to correct
Respect the redistribution channel
In previous post I had indicated that bitcoin was moving in a channel and the low of the last days bounces just as previously indicated.
Graph: previous post
That the triangle it was forming might not be, and it gave hints of possible movement.
Graph: previous post
And as we see it has been fulfilled.
In the last days the price is moving within the channel, to touch it seems the upper limit.
Today we can continue to validate the same analysis, of the redistribution channel
Morning Star Candle Pattern.
The situation is changing and the balance begins to tilt upward, although the trend takes longer to react.
The candle from the day before yesterday closed, as the chart shows, in a bullish engulfing way, which would be a bullish indication, accompanied by an increase in volume.
This forms a pattern called the Morning Star which is another bullish indication.
What is a Morning Star candlestick pattern?
The Morning Star is a Japanese candlestick pattern that usually appears at the end of downtrend in Forex. They are the starting point for the uptrend of prices. Mastering this entry point will help you open options with a high win rate.
Structure and characteristics
A standard Morning Star candlestick pattern consists of the following candles:
The first candle is a strong bearish candlestick (red).
The second candle is a special candlestick called Spinning Top.
Finally, the third one is a bullish candlestick (green) with a length at least equal to ½ of the first candle.
Meaning and where to appear
Traders often pay much attention to the Morning Star candlestick pattern at the end of a downtrend. At that time, this is a signal for traders that the price will rise again. Sometimes, they can also appear in an uptrend and signal a continuation of the uptrend.
The position of Morning Star appearing on the price chart
Combining the Morning Star candlestick pattern, you will receive a Bullish Pin Bar candlestick pattern. This is a warning signal for a bearish to bullish reversal. However, with a greater formation time, its accuracy will be higher than a single Pin Bar.
The variant Morning Star candlestick pattern
Variant Morning Star candlestick patterns are also highly accurate. They are also on the list of strong bullish signals in the market. Depending on the second candlestick, traders divide it into the following:
(A) Doji Star (the second candle is a Doji).
(B) Pin Bar Star (the second candle is a Pin Bar).
(C) Abandoned Baby (when a gap appears). This type is very rare and has very high accuracy.
Source Morning Star: howtotradeblog.com/morning-star-candlestick-pattern-forex/
Bitcoin withdrawals
The daily and weekly report begins to reflect positive results in bitcoin withdrawals by large investors
In the last days, 4300 bitcoin have been withdrawn from the exchanges.
This means that the interest in buying bitcoin has not been lost by large investors.
Dominance
We have already said it in previous posts.
The dominance of Bitcoin is at a minimum and has to go up.
If you look at the price it seems that it changes direction to the other trying the dominance to detach itself from the price.
Today there are already 5 consecutive bullish candles
Price Correction Thought
They have managed to implant in the minds of small investors the idea that bitcoin will continue to correct. That the upside is a rebound but the trend is downward.
What better time to start a new cycle.
Those who small investors, who invest in 50000 are going to sell when it reaches 50000 again, will not wait to see what happens, because they believe that it will fall, the notice have put that idea already in people, with negative news. And the same for the one I buy at 40000 or in 60000 dollars.
Positive news are not moving the price, only the negative ones. Manipulating a reality.
Conclusion
There are several bullish signs, and more having the minds of retail investors thinking that Bitcoin will continue correcting until 20000 dollars.
What will be missing to change the trend.
In the graph we can see two breakdown point in which price accelerates its fall and we see that it has not yet managed to break them up. Caution!!!
Should the price break these resistances to validate a new bullish short-term cycle and continue with the long-term cycle
And what do you think?
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Protect your assets use Stop loss
The alcoins market is very dependent on the price of Bitcoin, when Bitcoins goes up the alcoins go up more, but also in the other sense, so I suggest that you periodically review a Bitcoin and use stop loss and move it when they are already in profit. Do not let a profit become a loss.
We will continue monitoring
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READ DISCLAIMER: this publication / analysis is only for general information purposes. I am not a professional trader and I will never be a financial advisor. The material in this publication does not constitute any trading advice of any kind. This is the way I see the paintings and what my ideas are.
Perform your own analysis before making an investment decision. Use money that you are willing to lose if you make an investment.
If you make exchanges or investments after reading this publication, it is entirely at your own risk. I am not responsible for any of your gains or losses. By reading this publication, you acknowledge and agree that you will never hold me liable for any of your profits or losses.
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