The Bitcoin price has seen a crazy past 36 to 48 hours. After tumbling to as low as $7,300 in the middle of this week for seemingly no reason, BTC shot higher on Friday and Saturday, blowing the socks of traders the industry over. In fact, $400 million worth of BitMEX long and short positions were liquidated over a recent trading session.
However, analyst CryptoHamster recently observed that Bitcoin is still looking bullish on higher time frames. They recently posted the chart below, which shows that Bitcoin’s current one-week Heikin-Ashi candle has two tall wicks on either side and a skinny green body. For those not versed in technical analysis, this implies a “potential trend reversal.”
//twitter.com/CryptoNekoZ/status/10836480
While undeniably positive in and of itself, it is important to note that this gargantuan move, which brought Bitcoin as high as $10,600 on some exchanges, does not confirm a bullish trend reversal. However, technical signals are implying that the grip that bears have had on BTC for months is likely loosening.
Related Reading: Exhausted Bitcoin Price Down 13% From $10,500 Daily High
Bitcoin Prints Reversal Candle
If you’ve been keeping a close eye on the cryptocurrency charts in the past few hours, you know Bitcoin’s bullish momentum has been lost. The cryptocurrency is now trading at $9,100 — nearly $1,500 shy from the weekly high — and bears seem to have resumed control of the market.Indeed, this move has effectively negated the bearish implications of the recent drop to $7,400. But, Bitcoin is not home free just yet. According to trader NekoZ, the leading cryptocurrency has to hold the $9,097 price point, which is where BTC has bottomed on three separate occasions in the past six months. A six-hour candle close under this level could imply a 10% correction back to the low-$8,00s, NekoZ’s below chart implies.BTCUSD, 1W, Heikin-Ashi.
— CryptoHamster (@CryptoHamsterIO)
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Related Reading: Bitcoin Macro Bullish After Transferring $11 Trillion in Wealth Over Past Decade
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