A few days ago we looked at the weekly price chart of bitcoin and saw why it was a screaming sell and primed to pullback. We’ve gotten a pullback to the first key level and price is showing some resilience now.
Seller Bounce or Reversal Toward Higher Levels?
Looking at the daily chart above you can see we have a reversal pattern in the workings. Today’s candle needs to close above 10,500 for it to be valid, right about where price is at the time of this post.
That would give us the bullish-turn pattern I use for entry signals. However, is the a new long-term entry or just a trade?
I say it is just a trade as nothing has changed on the weekly chart. It is still extended from the 10 period average and this is the first candle after that nasty reversal candle that marked the end of last week.
Price has tested the 9,800 level I have mentioned in the past and is bouncing off of it. Maybe that is the only test of it and we move higher, but I can’t help being a skeptic and thinking it will test it again, especially with 10K being such a psychological number.
With all that said I’m staying nimble and will enter long for trades only for the time being. If this daily candle gives what we want I will take a shot.