DLavrov

Bitcoin - Update and The Reversal Candlestick Pattern

BITFINEX:BTCUSD   Биткоин
It's the update for the previous post which you can find in the related ideas.

The market gives us a reversal candlestick pattern at 5000.00 resistance level. RSI reached the overbought zone, and it will be able to provide a strong reversal signal soon. For this, the line of RSI will have to reverse and drop below 70 level.

We should be ready to see the correction movement from the resistance level. If the price breaks the Low Price of the signal candle, the market will be able to drop to the support zone at 4000.00 level. The price reversal from this zone will be good for buying.

As for the continuation of the upward movement.
DMI and MACD support the further upward movement, and the market can reach 6000.00 level. But it won't be so logical as the variant with the correction from 5000.00, bouncing from the support zone at 4000.00 and continuation of the uptrend to 6000.00 resistance. That's why I would like to focus on the model where the price bounces from 5000.00 and drops to the support.

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