Bitcoin Weekly Bullish Engulfing - What Does This Mean?
Updated
Yesterday Bitcoin closed the week with a bullish engulfing candle. A bullish engulfing is where the green candle is much larger than the previous red candle.
As you can see in the chart, 5 out of 6 bullish engulfing candles meant other green candles to follow on the weekly chart.
It also helps that Bitcoin has experienced sideways price action for the last few weeks, which adds to the probability of a trend change. Also as shown in my previous charts, the momentum has been changing in favor of the bulls.
The bad news is, Bitcoin is currently facing major resistance at 7,800 so the bullish engulfing candle was certainly needed to help Bitcoin over come this resistance. Not only has Bitcoin failed at surpassing 7,800 in early June, there is also a major trendline that stems from March that is suppressing the price.
If Bitcoin is able to pass this resistance, then the next resistance line is 8,200. If Bitcoin can pass this level, which I believe would be easier than passing 7,800, then I believe a retest of 10k seems likely.
As you can see in the chart, 5 out of 6 bullish engulfing candles meant other green candles to follow on the weekly chart.
It also helps that Bitcoin has experienced sideways price action for the last few weeks, which adds to the probability of a trend change. Also as shown in my previous charts, the momentum has been changing in favor of the bulls.
The bad news is, Bitcoin is currently facing major resistance at 7,800 so the bullish engulfing candle was certainly needed to help Bitcoin over come this resistance. Not only has Bitcoin failed at surpassing 7,800 in early June, there is also a major trendline that stems from March that is suppressing the price.
If Bitcoin is able to pass this resistance, then the next resistance line is 8,200. If Bitcoin can pass this level, which I believe would be easier than passing 7,800, then I believe a retest of 10k seems likely.
Order cancelled
Was unable to close above resistance therefore I never entered this trade.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.