2018-9-11 17:19 |
Last weeks candle for the price of Bitcoin was a bearish engulfing candle. A bearish engulfing is where the drop engulfs the prior candle and typically takes place after a move to the upside. Two weeks ago we had a bullish week for cryptocurrencies where even altcoins were recording large appreciations. However, Bitcoin has failed to overcome the 50EMA and suffered a steep drop last week.
The drop brings the price back near its low of 2018. Price is currently trading below $6300 on most exchanges, and the lows of 2018 are around $5800. A drop back to these levels will mean Bitcoin has tested this level multiple times this year. The more times a level is tested, the weaker it becomes so this time could see Bitcoin form new lows for the year. Bitcoin has been forming lower lows and lower highs since December.
Bitcoin Weekly Chart – Source: Tradingview.comThe daily chart shows the descending triangle pattern which has been in play since January. This is a very bearish pattern which has been respected on multiple upward swings in price action. The daily chart is supporting the bearish outlook which is provided by the weekly.
The descending triangle pattern would indicate price will continue to drop below $6000 and make a significant movement to the downside. It would also indicate that any upward movement is unlikely to get far above $6800 to $7000. The past two days upward movements have been on low volume making it more likely than a downward movement is to follow. Outlook is strongly bearish.
Bitcoin Daily Chart – Source: Tradingview.com Key Takeaways: Bearish engulfing formed on the weekly chart. Descending triangle supports the bearish outlook on the daily. Upward movement is unlikely to get above $6800 to $7000. Significant downward movements below $6000 are more likely than ever. DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Bearish Engulfing on Weekly Candle Spells Trouble for Bitcoin [BTC] Price was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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