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Bitcoin Price Analysis: Looking at a Short-Term Bull Reversal if Pass $7.4K

November 27, 2019 at 5:02 PM | By Jit Sutradhar Markets

Look

  • Bitcoin has created a hammer candle on the chart three days, warning of impending reversal bull. However, a break above the high-candles of $ 7380 is required to confirm the change of trend in the short term.
  • A move above $ 7,380 will enable twin bullish cues on the 4 hour chart and allow the rally to $ 8,000.
  • Under reception Monday’s low of $ 6515 would mean a continuation of the sell-off of recent highs above $ 10,000.

Bitcoin needs to break above $ 7,380 to confirm the reversal of short-term bull and invite pressure to buy more powerful, three-day chart shows.

In particular, the top cryptocurrency by market value creates a hammer candle in three days on November 26. A hammer candle, consisting of a long lower shadow and small upper body, means a period of three days beginning with pessimism, but ended on a lighter note optimistic.

Stepping back, which cryptocurrency ran into selling pressure in the near $ 7350 on 24 November and fell to six-month lows near $ 6,500 the next day. drop, however, was short-lived and price quickly rose back to $ 7,380 before scoring close at $ 7159 UTC on November 26 Recovery of $ 6500 to $ 7159 represents a long lower shadow of the hammer and the spread between $ 7,350 and $ 7159 represents the body.

While the pattern is considered a bullish signal, traders usually wait for a confirmation in the form of follow-up is strong, convincing steps above should be higher than the hammer candle. That means a break above $ 7,380 is required to confirm a bullish reversal and might lead to a strong recovery rally.

BTC changed hands at $ 6917, representing a decrease of 2.4 percent on a 24 hour basis, after a sudden drop shortly before press time.

Many of the latest decline in investor community associate with the confirmation of the theft crypto $ 49 million in South Korea exchange Upbit. exchange said ether transfer has been made to the wallet is not known.

Popular analyst Joseph Young, however, believe the drop in prices seen in the last few minutes may be encouraged by news Upbit.

Joseph-Young

3-day chart

3-day-chart_4

long lower shadow candle attached to the hammer indicates the seller fatigue. If the three days of the current candle end (Friday, UTC) above $ 7,380, hammer bullish reversal will be confirmed. That would open the door for $ 8,000.

On the other hand, the low close under the hammer at $ 6515 would mean a continuation of the sell-off of highs above $ 10,000.

4 hours chart

4-hour-chart

A move above $ 7,380 will enable twin bullish cues on the 4 hour chart: upside break of the trendline down and inverted head and shoulder breakout on the graph line.

The latter will create space for a rally to $ 8245 (according to the method moves the target measure).

Target visible as possible, because the index’s 14-day relative strength report oversold condition by reading below 30.

In addition, the location of the hammer candle is good reason to believe the strong bounce is in the offing.

A hammer candle representing bearish fatigue, as mentioned previously and gain confidence when it comes after the famous price decline, which happened here.

A pattern has emerged following the sell-off of $ 10,350 to $ 6515. wax lost its relevance in the peak of the market and during consolidation.

Image via Shutterstock

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