The current monthly candle on the Bitcoin price charts is different from others that have been available since the beginning of the bear market, and a large bottom wick is almost twice the length of the candle body.
If Bitcoin price closes the monthly candle around $ 8,000 or above, it creates a strong bullish return candlestick called "hammer". A rapprochement like this may indicate that a reversal is close and a low level is likely.
Bitcoin Price May Close Monthly as a Strong Reverse Candle
Bitcoin price made an unusual start for the year. After gathering over 50% after weeks and retesting the highest level above $ 10,000, the first cryptocurrency history fell below $ 4,000 after a single-day crash.
The resulting price action has left one of the largest monthly red candles on the Bitcoin price charts for the past five years. These large and powerful red candles have not been seen since the last bottom of the cryptocurrency in the 2014-2015 bear market.
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After falling below the record-breaking $ 4,000, Bitcoin quickly recovered and almost doubled and left a huge wick on the monthly candle. However, $ 6,800 and higher resistance prevents the leading cryptocurrency from reaching higher levels with its market value.
If bitcoin price could gain some momentum and close this monthly candle, which is around $ 8,000 or higher this Tuesday, the monthly candle will close as a rising "hammer" reverse candle.
if the #Bitco The monthly candle closes around $ 8,000 by reducing the body candle… the rising hammer will enter the game.
Be ready. pic.twitter.com/7zj2eux7xp
– Crypto Rand (@crypto_rand) March 25, 2020
Education: Learn All About Bull Hammer Japanese Candlestick
Bitcoin price charts, like the price charts of any asset, are often displayed with green and red candles with varying size bodies and suppositories. Called these Japanese candlesticks.
Other price charts, line charts are Kagi, Heikin Ashi, Renko and Point and Figure. They all offer analysts a different perspective on price action, but Japanese candlesticks are one of the most common for easy-to-read signals and price patterns.
How these Japanese candlesticks are closed or how they look in order can often help analysts and traders predict the upcoming price action.
Some candlesticks and patterns can signal even when a return is close. Among the candlesticks that provide such a signal, bull hammer.
The candlestick is represented by a long wick at the bottom and a small or nonexistent wick above a small candle body. The candle resembles a hammer with a handle and can turn green or red.
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The candlestick depicts sellers who come in strong with the candle open, but selloff is absorbed by buyers, who quickly collect the asset at such low prices. Such a price action indicates that a reversal is necessary, as it typically falls once again at attractive enough prices to sustain interest.
However, the candlestick is only valid upwards with approval or after the monthly candle closure forming such a pattern. If the pattern approves, the bottom will most likely go inside and Bitcoin price will continue its upward trend from here.
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