Is crypto ready to explode? Reversal pattern printing!
From investopedia.com:
A Dragonfly Doji is a type of candlestick pattern that can signal a potential price reversal, either to the downside or upside, depending on past price action. It forms when the asset's high, open, and close prices are the same. The long lower shadow suggests that there was aggressive selling during the period of the candle, but since the price closed near the open, it shows that buyers were able to absorb the selling and push the price back up. The pattern is more significant if it occurs after a price decline, signaling a potential price rise. If it appears after a price advance, it indicates more selling is entering the market and a price decline could follow. The pattern needs to be confirmed by the candle following the Dragonfly Doji.
https://www.investopedia.com/terms/d/dragonfly-doji.asp#:~:text=star%20%26%20inverted%20hammer.-,The%20Bottom%20Line,close%20prices%20are%20the%20same.
Looks like this is exactly what is unfolding in the crypto Total Marketcap monthly chart.
If we print a Dragonfly Doji we can potentially see a reversal in the trendline. As you can see in the image below the Dragonfly Doji is printing:
So, what do we need to confirm the trend reversal?
First of all, we need a green candle at the end of this month and for this to happen the TOTAL MCAP needs to close around or above $1.034T. Right now it's at $1.042T.
If we have a Dragonfly Doji at the end of this month we can expect a trend reversal and a strong movement to the upside led by Ethereum then Bitcoin and other altcoins.
I am definitely bullish on #Bitcoin and #Ethereum. What about you?
Confirming the reversal I will add both to my longterm portfolio.
DYOR. This is not financial advice.
A Dragonfly Doji is a type of candlestick pattern that can signal a potential price reversal, either to the downside or upside, depending on past price action. It forms when the asset's high, open, and close prices are the same. The long lower shadow suggests that there was aggressive selling during the period of the candle, but since the price closed near the open, it shows that buyers were able to absorb the selling and push the price back up. The pattern is more significant if it occurs after a price decline, signaling a potential price rise. If it appears after a price advance, it indicates more selling is entering the market and a price decline could follow. The pattern needs to be confirmed by the candle following the Dragonfly Doji.
https://www.investopedia.com/terms/d/dragonfly-doji.asp#:~:text=star%20%26%20inverted%20hammer.-,The%20Bottom%20Line,close%20prices%20are%20the%20same.
Looks like this is exactly what is unfolding in the crypto Total Marketcap monthly chart.
If we print a Dragonfly Doji we can potentially see a reversal in the trendline. As you can see in the image below the Dragonfly Doji is printing:
So, what do we need to confirm the trend reversal?
First of all, we need a green candle at the end of this month and for this to happen the TOTAL MCAP needs to close around or above $1.034T. Right now it's at $1.042T.
If we have a Dragonfly Doji at the end of this month we can expect a trend reversal and a strong movement to the upside led by Ethereum then Bitcoin and other altcoins.
I am definitely bullish on #Bitcoin and #Ethereum. What about you?
Confirming the reversal I will add both to my longterm portfolio.
DYOR. This is not financial advice.
Comment:
One month after this analysis we can see amazing results in the total crypto market cap
I expect some correction here but the trend has clearly reversed to the upside.
I expect some correction here but the trend has clearly reversed to the upside.
Is this signaling a trend reversal? What does it mean?
We still have to wait and see how things will develop from here and how the world economy - especially the American economy - will react.
All in all, I'm pretty much convinced that Bitcoin and crypto are consolidating the first phase of the bull market.