Today may dictate a trend for the coming weeks

16.01.2020 17:26:19

Two days ago, Bitcoin attempted to break out of the resistance zone and rise above $ 8800, but, unfortunately, the attempt was unsuccessful. As a result, a candle formed on the daily chart, which can determine where the price of Bitcoin will go in the coming days, or maybe even weeks.

On December 17, 2019, the price of Bitcoin reached $ 6450, setting a December low before starting a bull rally and reaching $ 8900 in 2020. But the resistance area level of $ 8800 stopped the rally. As a result, the price of bitcoin formed a Doji candle on the daily chart.

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Doji usually signals uncertainty about the movement of prices. Therefore, today's close of the daily candle will be especially important. It will be a signal for both bulls and bears, and will probably determine the trend for the next few months.

In our case, the “evening star” figure is formed on the daily chart. An evening star is a reversal pattern. It is a bearish formation. Accordingly, it arises on an uptrend. The first candle in the figure forms a maximum of the trend. Then a second candle appears with a small body, but also with a new high. That is, the second candle is above the first. The third candlestick confirms the trend reversal. Closing the third candle gives a sell signal.

Closing 3 long bearish candles give a "green light" to complete the transaction. The formation of this candle tells us about the change in the uptrend to the downtrend and the presence of sufficient strength in the bears.