The new monthly candle is closed as a DOJI. This is one of the most powerful reversal candles that can happen at the end of a trend. The previous candle from January was a huge green candle, so this DOJI from February is an indication of bullish exhaustion. The bulls were not able to continue the uptrend, and the bears stepped in. This is the psychology behind this reversal candle, and of course, do not forget that the monthly interval is very powerful; that's why it has a lot of value.
On the chart, you can see the gate to a new bull market. We are going to enter through the gate later this year, but not now. I expect a last pullback to 17k - 18k to fill the gap and retest the previous market structure. Simply, we need a retest because that's what markets usually do.
This is what is going to happen. The market never moves in a straight line, and because the bear market was extremely steep, the bulls need more time to recover and accumulate!
This scenario is not just an option that can happen; in my opinion, it's very likely to happen! But it's also good news for people who still need to buy cheap bitcoin.
At this point, we can see an incomplete reversal pattern. I feel like I am missing something. The right shoulder is not yet formed, and the GAP is unfilled. If we continue to go higher, then it will be even worse because otherwise we are going to crash even more at a higher level.
The DXY index is rising at this moment, and we will reach much higher levels.
This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I post trade setups privately.
I think the majority is now bullish, and everyone is talking about the future of bitcoin and how it's going to be great. It will, but now we need to shake out these traders from the market by going down.
There are a lot of signs of trend reversal on lower timeframes, too. The bears started to sell, and you can identify this action, of course, because the price action never lies. It looks like the sellers are back.
Thank you, and for more ideas, hit "Like" and "Follow"!
all this crystal ball nonsense is a joke. first 30k and then 16k. but really you are just fishing for clicks. I doubt your money is on the line anywhere. anyway we are at monthly L3 around 22k. possible bounce area
Tolberti
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@Gunslinger2005, Your comments are always exactly opposite of the truth 👍 My long is prepared at at 21833.30 for a quick gains, then it will go down below 20k.
P_S_trade
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Our trade plan
Tolberti
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@P_S_trade, Definitely possible! Thanks for sharing.
MichaelB.Hensley
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Good spot.. but, I believe the general consensus is that BTC was heading up to $27-28k, before falling down to lower levels. This doji, is a *monthly* reversal, right? So, as far as the big crash goes, it has a month to play out, right? Kind of as expected. Not likely a, "react fast" situation, is it? Good spot though.
Tolberti
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@michaelb.Hensley, Thanks; it's possible to go up, of course, but I think the probability is now to go lower.
MichaelB.Hensley
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@Tolberti, ... threw a hell of a wick, today. I followed your advice and repositioned. *tip* =)