Hello, dear members of LeoFinance!
The price of Bitcoin has just rapidly dropped below the psychological level of $15,000 per one digital coin. It sank to the level of approximately $13,350.
Now the price started to rebound and Bitcoin is trading at $14,931. However, because of the price drop, in the daily chart (1D) the current candlestick is bearish:
And, now the question is: Is it the end of the price increase and a beginning of trend reversal?
So, let's have a look at the recent candlestick and try to answer the question. Ok! On Thursday (November 5th) a solid bullish candlestick formed.
After that on Friday (November 6th) a Long-legged Doji formed. Theoretically, Long-legged Doji used by some traders to warn that indecision is entering the market after a strong advance, or in other words: that the forces of supply and demand are nearing equilibrium. Some traders even view this candlestick as a potential trend reversal signal. That's why we have to be very vigilant.
And, today (November 7th), at the moment, the current candlestick is bearish. Nevertheless, I would like to point out that the current bearish candlestick has a local low above the opening price of the bullish candlestick. That's why I don't consider the recent rapid price decline as a solid bearish signal - it is just volatility.
However, we have to keep in mind that the current daily candlestick may change by the end of the day. That's why we have to keep an eye on the current situation.
To be continue...
Fellow LeoFinancier, what are you thoughts on BTC/USD?
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 14+ years, and as a cryptocurrency analyst for the last 3+ years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency trades, investments and etc.
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