Bull Breather
BTC: Price: $8,670 | Market cap: $157 billion | 24-Hr Volume: $33 billion
Trend: Bullish Bitcoin witnessed two-way business on Wednesday and ended up creating a "doji" candle - widely considered a sign of indecision in the marketplace.
In this case, the candle could be considered a sign of buyer exhaustion, as it has appeared following a sharp rally from $6,850 to $8,900 and suggests the indecision is predominantly among bulls.
Bull breather often paves the way for a price correction. A notable pullback to $8,200 could be seen if the support at $8,555 is breached, confirming a double top breakdown on the hourly chart.
That said, the outlook will remain bullish as long as the higher low of $7,667 created on Jan.10 is intact. That, however, looks unlikely with the 5- and 10-day averages continuing to trend north. These averages, currently at $8,508 and $8,276, tend to reverse pullbacks when they are on an upward trajectory. Further, the longer-timeframe charts have recently turned bullish. Read Analysis |