Japanese Renko | Daily & Weekly (Bearish Trend Confirmed)

Aug 4At times, it is hard to believe, all the warnings that the market can give.
It is incredible to know, that the charts reveal always, with a high level of accuracy, exactly what's to come.

Here we are looking at the Japanese Renko charting system, which helps us identify a trend. We will focus on the daily and weekly timeframes.

➖ Bitcoin Renko | Daily


Since mid-March, we have lower highs and currently a red brick has been laid and two more in the making. A single brick is used as a buy/sell signal in this system. This means that the bearish potential is really strong and the bearish trend is already underway.

➖ Bitcoin Renko | Weekly


The weekly renko chart is pretty interesting, since March, we still have no red bricks but there is one in the making. Only when the brick is laid down, dark red, the signal is confirmed and valid.

Bitcoin needs to close weekly below 54,000 for a red brick to appear and a sell signal, the confirmation of the downtrend in this system, is confirmed.

➖ Conclusion

After a major bullish wave, November 2022 through March 2024 (Renko weekly), we are seeing the start of a bearish trend.

Renko daily shows that the downtrend is already underway.

While this system is a bit slow, it helps to avoid whipsaw. With the bars and candles we can have a closer look at the action happening short-term. With months of bearish consolidation, strong selling pressure, we are led to belief and conclude that the next major move will be to the downside, so prepare.

Thank you for reading.

Namaste.