BTC/USD weekly candle closes green, forming a morning star candlestick pattern.
Looking at the past, a weekly bullish engulfing candle followed by a morning star lead to massive rise in price (see green arrows and yellow circles). We may see a similar pattern from here on out.
Also, the volume profile of both morning stars gives further evidence to the similarity of the patterns (see orange arrows). Particularly, the 1st red candle of the pattern exhibits higher volume than average.
If history would repeat itself, possible targets would be 33k which is the 200% (2.0) fib of the current bull run; this is similar to the previous bull run to 8k (see both fib retracements).
A weekly close below 13800-14000 would obviously invalidate the pattern. With that said, I think it would take at least a couple of strong bearish weekly candles to invalidate this setup.
Note: Chart is on log scale.
Looking at the past, a weekly bullish engulfing candle followed by a morning star lead to massive rise in price (see green arrows and yellow circles). We may see a similar pattern from here on out.
Also, the volume profile of both morning stars gives further evidence to the similarity of the patterns (see orange arrows). Particularly, the 1st red candle of the pattern exhibits higher volume than average.
If history would repeat itself, possible targets would be 33k which is the 200% (2.0) fib of the current bull run; this is similar to the previous bull run to 8k (see both fib retracements).
A weekly close below 13800-14000 would obviously invalidate the pattern. With that said, I think it would take at least a couple of strong bearish weekly candles to invalidate this setup.
Note: Chart is on log scale.