Bitcoin (BTCUSD) printed the "Three White Soldiers" candlestick pattern on the weekly time frame.
Now, this pattern can normally be used as a reversal signal when it comes at the bottom of a trend, but after consolidation (blue on the chart) it can signal the continuation of a trend.
The above idea is supported by increasing volume.
So we have the "Three White Soliders" candlestick pattern after consolidation with good volume.
Market sentiment is now turning bullish, but with plenty of denial going on all around the place.
The altcoins market bullishness is another signal that the cryptocurrency market is in a position to continue growing.
Altcoins that tend to move inverse to Bitcoin are now growing as well.
Even with the above said, we remain open to seeing Bitcoin going either way, so I've marked support and resistance levels on the chart.
Brown dashed lines are for support levels.
Green dashed line is the main strong support (EMA10).
Blue dashed lines are for resistance levels (targets).
Where do you think Bitcoin is headed next?
Please share your thoughts on the comments section below.
Remember to hit like now if you want to show your support.
Namaste.
Comment
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Previous analysis (Bitcoin on the daily time frame) - Common mistake made by all analysts...:
Hey @alanmasters I really appreciate all of the work you put into these charts and can honestly say you are one of my favorite guys to follow. I just put this together (tradingview.com/x/oyLWHt42/) for a wide perspective (2015-2019) that everyone can benefit from. I guess it’s my way of giving back. Hope you find it useful. Have a nice evening!
AlanSantana
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@NikGibler, Looks pretty good, can you publish it?
ZpaceBuddha
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@alanmasters, Sure thing... Going to write-up some observations and do my own proper personal analysis of the data. I’ll let you know when it’s up.
Wadrin
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Great! I have studied Steve Nison's work and I did not spot this.
Hello, another video TA on bitcoin, i talk about few scenarios and thing you should look at, Enjoy !
AlanSantana
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@gregloren1, Thanks for the chart.
Gibmoses
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Tylax-Finances
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Here is a paragraph about this topic from the website Forex Strategies Library:
"A three white soldiers pattern appeared after two small bearish candlesticks. The third candlestick was very long and broke out the previous highs resistance. The price rose more than 70 pips in several hours, however, the stochastic oscillator indicator showed clearly that the market was overbought. So it’s not hard to understand the following market did not keep moving up."
If you take a look at BTC´s weekly RSI you can clearly see that we are in overbought territory right now. And RSI is by far not the only indicator that screams for a correction/trend reversal.
I know it´s only your opinion but speaking about "ultra bullishness" in this case seems to be very negligently in my eyes.