Bitcoin Price Prints Reversal Candle as Rally Stops at $8,300 16

Bitcoin Price Prints Reversal Candle as Rally Stops at $8,300

Bitcoin Drops After Strong Sunday

Over the weekend, Bitcoin (BTC) started to show signs of a bullish reversal. On Sunday, in fact, the cryptocurrency surged by 6% from $7,900 to $8,350 or so within a day’s time.

Altcoins followed suit, with a majority of large caps like Ethereum and XRP also experiencing 4% to 8% bounces from yesterday’s low. Monero, BSV, and BCH, and 0x experienced more dramatic gains of above 10%.

At the time, this move made many analysts bullish. Prominent cryptocurrency trader Alistair Milne pointed out on Sunday that this move higher allowed Bitcoin to break above a symmetrical triangle pattern that originated in mid-September.

But, the bull trend is already ending, according to Chonis anyway. The popular trader said in a tweet that Bitcoin’s daily Heikin Ashi candle chart recently printed a reversal candle of the previous trend, which was bullish. This, he claims, implies that a “bearish trend [is] now being established.”

Indeed. As of the time of writing this, the leading cryptocurrency has found itself changing hands for $8,085 — down 2% in the past 24 hours. In other words, bulls are already back on the sidelines after a day or two in the spotlight.

What’s Next? 

This may leave you wondering — what’s next?

Well, right now, analysts are divided.

A Bitazu Capital partner found that the Relative Strength Index, positive Directional Indicator, and negative Directional Indicator all have to reset to an important horizontal level,” he argued before adding that “such levels have only one job: to turn the BTC price around.”

Aside from that, a model that has predicted Bitcoin’s trends to at least an 80% accuracy this year has shown that BTC will begin to trend higher into the coming year, and thus most likely bottomed at $7,700.

Also, Brave New Coin’s Josh Olszewicz found that BTC is looking more bullish than otherwise. “4h $BTC – bull div held – range lows held – back above Bollinger Band midline (20SMA),” he explained in a tweet.

Again, there are still valid bearish arguments. The most notable of these bearish arguments is the impending “death cross” for the Bitcoin chart. Chonis recently remarked that Bitcoin’s 50-day and 200-day moving averages are currently facing down a “death cross” that may come to fruition in the coming week.

Photo by Michael Benz on Unsplash