Bitcoin - Weekly Doji Reversal, fall to $9000 USD on the cards?
Updated
TL;DR: Bitcoin has put in a weekly Doji candle pattern (indicates indecision and potential reversal), be aware that we are quite extended on the weekly time frame and
overdue for a pullback (as alluded to in my prior Bitcoin article). The downside target support would be the 9 ema on the weekly time frame, at around $9100 USD, this also correlates roughly with the lower trend line, as seem on my other article.
Bitcoin's price has fallen back recently, which in conjunction with the recent orgasmic rally to over $13,000 USD and with the Doji candle pattern on the week of this rally having just been put in, this signals a high likelihood of a pullback/ consolidation.
This pullback scenario can of course be pushed back (pullbacks can never be negated, only pushed to a later date) if Bitcoin puts in a steeper upward trend, which coincidentally would form a rising wedge pattern, culminating at the $20,000 USD prior high, however this scenario seems unlikely.
A more likley outcome would see Bitcoin have a more minor correction to the lower trend line (or perhaps slightly lower on a wick low) before trending sideways to regain momentum for the next exponential move higher (again i outlined this in my previous article).
All in all, Bitcoin's prevailing trend remains strong, this correction is nothing to worry about (at press time) and could very well provide for an excellent entry point for those looking to enter a position (dollar cost averaging would be my preferred method).
As always, any comments or queries are welcomed :)
overdue for a pullback (as alluded to in my prior Bitcoin article). The downside target support would be the 9 ema on the weekly time frame, at around $9100 USD, this also correlates roughly with the lower trend line, as seem on my other article.
Bitcoin's price has fallen back recently, which in conjunction with the recent orgasmic rally to over $13,000 USD and with the Doji candle pattern on the week of this rally having just been put in, this signals a high likelihood of a pullback/ consolidation.
This pullback scenario can of course be pushed back (pullbacks can never be negated, only pushed to a later date) if Bitcoin puts in a steeper upward trend, which coincidentally would form a rising wedge pattern, culminating at the $20,000 USD prior high, however this scenario seems unlikely.
A more likley outcome would see Bitcoin have a more minor correction to the lower trend line (or perhaps slightly lower on a wick low) before trending sideways to regain momentum for the next exponential move higher (again i outlined this in my previous article).
All in all, Bitcoin's prevailing trend remains strong, this correction is nothing to worry about (at press time) and could very well provide for an excellent entry point for those looking to enter a position (dollar cost averaging would be my preferred method).
As always, any comments or queries are welcomed :)
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Bitcoin appears to be moving down to support at the 9 ema on the weekly chart, be aware that some more downside is possible, likely to around the $9,500 USD mark, potentially a bit lower. A move to this level would be a great long entry, particularly for pyramiding into your position.
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