Let’s dive into a brief analysis of the Bitcoin chart.
First, let's look at the daily chart.
Recently, Bitcoin has been declining and consolidating for five days before forming a bullish engulfing candlestick yesterday.
This indicates that the bullish momentum of one day is greater than the bearish momentum of the past five days.
A bullish engulfing candle can often be an early sign of a trend reversal.
Next, let's look at the 4-hour chart.
In the 4-hour chart, a Bear Trap pattern is observed.
A Bear Trap occurs near the lower boundary of a channel, where the price drops below the channel only to quickly recover back within it.
If a swift recovery follows, there is a high probability that the price will reach the upper boundary of the channel.
Now, let's move on to the 15-minute chart.
Bitcoin has successfully broken above a red trendline and completed a retest, confirming the breakout.
Following this, it encountered resistance at a double-top pattern but managed to break through with a decisive bullish candle.
The previous resistance level around 58.8K has now flipped to support, demonstrating an S/R Flip, where resistance turns into support.
The S/R Flip is a key concept in technical analysis, indicating a significant shift in market dynamics where former resistance levels become support zones.
Currently, the former resistance is holding as support, which is a bullish signal.
< Summary >
1. A bullish engulfing candle has appeared after five days of decline, suggesting a potential reversal.
2. The emergence of a Bear Trap pattern near the lower channel boundary increases the likelihood of a rebound if the channel is maintained.
3. An S/R Flip is in play, with previous resistance now acting as support, reinforcing the case for a bullish reversal.
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