A Bitcoin Morning Star, in Time For The Holidays =D (BTC)
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it.
Looking at the daily BTC chart, you can see that not much has changed since yesterday's analysis. However, there are subtle details that are noteworthy. As you can see, I have the candles of the past three days circled. That's because the current candle formation looks like it's setting up to print a small morning star doji.
For those who don't know, a morning star doji is a reversal candlestick formation, that typically presents itself at the bottom of a move. For the pattern to be created, there needs to be a red candle with a relatively tall body, followed by a doji star, followed by a green candle, with a relatively tall body. On the chart, we have a small version of that developing. You can see that on the 14th, there was a red candle. The body of that candle isn't as tall as we would like, but it still fits the criteria. Next, we have a clear doji, and it is in the proper position — slightly below the previous day's candle. Today, we are currently forming a green candle, which currently has a perfectly tall body.
Since today's daily candle hasn't closed yet, there is still a lot that can happen. We could see the candle turn red and form an inverted hammer, if the market pushes to the downside. Obviously, if something like that happens, that would negate the potential of a morning star doji formation. So, before we jump to conclusions, we really need to see how this current daily candle closes. Assuming that a morning star doji is printed, we need to see an immediate continuation higher, to validate the pattern.
However, keep in mind that the 10 EMA (in blue) is just above. It has been extremely resistive during this selloff. So, if we close a few candles above it, on the back of a morning star doji reversal signal, we can assume that there is a good chance for a relief rally to ensue.
Additionally, the MACD has been printing an increasingly long bullish divergence. Unfortunately, there is no real bullish momentum expansion yet to speak of. So, I wouldn't get too excited about it just yet.
Overall, I'm simply illustrating that the finer details of the BTC chart are flashing some mild (currently unconfirmed) reversal signals. We haven't touched the $3000 level yet, and there's no guarantee that we will. Ultimately, if the current candle doesn't complete the morning star, the likelihood is that we will continue to drift lower, until we test support on $3000. Regardless, the decline in sell-side momentum, the potential morning star, several spinning tops, a building MACD divergence, and quiet volume, shows that market is indecisive and we may be approaching a brief turning point in this selloff. With that said, don't jump to conclusions until these things are confirmed. The technical development that I'm looking for, as an indicator that a rally is beginning, is a close above the 10 EMA on rising volume and expanding momentum.
Happy Holidays Everyone!
'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Looking at the daily BTC chart, you can see that not much has changed since yesterday's analysis. However, there are subtle details that are noteworthy. As you can see, I have the candles of the past three days circled. That's because the current candle formation looks like it's setting up to print a small morning star doji.
For those who don't know, a morning star doji is a reversal candlestick formation, that typically presents itself at the bottom of a move. For the pattern to be created, there needs to be a red candle with a relatively tall body, followed by a doji star, followed by a green candle, with a relatively tall body. On the chart, we have a small version of that developing. You can see that on the 14th, there was a red candle. The body of that candle isn't as tall as we would like, but it still fits the criteria. Next, we have a clear doji, and it is in the proper position — slightly below the previous day's candle. Today, we are currently forming a green candle, which currently has a perfectly tall body.
Since today's daily candle hasn't closed yet, there is still a lot that can happen. We could see the candle turn red and form an inverted hammer, if the market pushes to the downside. Obviously, if something like that happens, that would negate the potential of a morning star doji formation. So, before we jump to conclusions, we really need to see how this current daily candle closes. Assuming that a morning star doji is printed, we need to see an immediate continuation higher, to validate the pattern.
However, keep in mind that the 10 EMA (in blue) is just above. It has been extremely resistive during this selloff. So, if we close a few candles above it, on the back of a morning star doji reversal signal, we can assume that there is a good chance for a relief rally to ensue.
Additionally, the MACD has been printing an increasingly long bullish divergence. Unfortunately, there is no real bullish momentum expansion yet to speak of. So, I wouldn't get too excited about it just yet.
Overall, I'm simply illustrating that the finer details of the BTC chart are flashing some mild (currently unconfirmed) reversal signals. We haven't touched the $3000 level yet, and there's no guarantee that we will. Ultimately, if the current candle doesn't complete the morning star, the likelihood is that we will continue to drift lower, until we test support on $3000. Regardless, the decline in sell-side momentum, the potential morning star, several spinning tops, a building MACD divergence, and quiet volume, shows that market is indecisive and we may be approaching a brief turning point in this selloff. With that said, don't jump to conclusions until these things are confirmed. The technical development that I'm looking for, as an indicator that a rally is beginning, is a close above the 10 EMA on rising volume and expanding momentum.
Happy Holidays Everyone!
'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Comment:
Remember: a morning star doji doesn't mean much, if price can't surpass the 10 EMA (in blue.)
Comment:
Hi friends! As an update, today's candle has closed, and it did not produce a morning star pattern. The third candle is green, but it's more of an inverted hammer than anything. So, for now, lets keep an eye on resistance at the 10 EMA, and support at $3000.
