The bitcoin price closed last night, the weekly candle like a shooting star doji, or star exchange star, could signal that a strong reversal and a strong plunge are coming when formed at the top of an uptrend.
So will this be more downside in Bitcoin in the near future? Or the recent drop below the last $ 4,000 bottom before the next bull market?
Weekly Bitcoin candles close as Shooting Star
The bitcoin price is trading below $ 7,000 once again, closing the weekly candle at around $ 6,900. As the dust settled in during the week's price action, the candle closed like a doji meteor - a form of Japanese candle that usually shows a reversal.
The star of the throne has appeared in the sky of Bitcoin
The Shooting Star is a bearish candle, consisting of an extremely long wick, and a very small real body, and is close to the open candle.
This candle shows an extremely strong repulsive force from the buyer who is ultimately rejected from the seller, resulting in a long upper wick. Because the force from the bears is so strong and buyers are exhausted from the initial push, the latter action is usually down, and there will usually be a deep and dangerous fall.
An ice shooting star looks exactly like an inverted hammer candle - another reversing candle. The only difference is that shooting stars occur at the beginning of an uptrend, while a reverse hammer occurs at the bottom of a downtrend.
The shooting star is getting ready to bring BTC down
Meteors often precede a strong rush, due to the pump running out of money in the initial bull run, then being surprised by the power of short-sellers.
The price of bitcoin rose from as low as around $ 3,800 and soared back to above $ 7,000 which took away a lot of buying momentum. But once the leading cryptocurrency encountered support that had previously become resistant, the asset was rejected resulting in a long wick and closed down like a doji-changing star every week.
The last time a doji exchange star was spotted on the Bitcoin price chart over weekly time frames, was on October 18 when the Tether scandal reached its peak. Traders worried about the issues surrounding this stablecoin company, sold out USDT on Bitcoin in panic, causing prices to rise rapidly.
What was left behind was a giant wick, the bulls who bought what they thought were a major breakthrough from the resistance of the downtrend.
With the bulls running out of breath and the bear taking the upper hand, less than a month later, the price of Bitcoin broke through the support at $ 6,000 and hit the bottom of the current bear market at $ 3,200.
Now that another doji-changing star has formed on the Bitcoin price chart, could another similar epic jump be in sight?
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Truong Ba
According to NewsBTC
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