Bitcoin Resists The Onslaught Of A Shooting Star
A couple of weeks ago, the price of bitcoin came to exceed the resistance zone that it presents at 65,520 dollars , which are the maximums that it marked during the past month of April and that were the origin of the last downward correction that led to the queen. of cryptocurrencies to reach $ 28,800 in mid-June.
This improvement, which enabled the price of bitcoin to be at an absolute free rise at times, which is the most bullish technical situation that exists, was barely sustained for a day, which already warned that we could be facing a Judas or false , which is something that I already pointed out weeks ago that it could happen.
In this sense, I have to point out that the inability to sustainably overcome the resistance of $ 65,520 is something that does not surprise me at all since the attack at this very important resistive level occurred with a high overbought.
In this type of situation I always suggest waiting for a confirmation at the weekly closing before trusting it. By applying this type of filter, an investor can avoid what until now has been a simple scare, specifically the one that caused the appearance of a weekly candle line that in eastern technical jargon is known as a shooting star, which I also noticed last week .
A shooting star is a Japanese candlestick formation that occurs when the price rises well above the opening price, but ends up closing below the opening price. This type of pattern tends to warn of an at least temporary ceiling in rises and tends to cause either a lateral consolidation or a turn in the previous uptrend.
For the latter it is necessary that at the end of a week (the shooting star was seen on a weekly basis) the minimums of the same, which were 60,100 dollars, are lost. This is something that has not happened, so we can say that bitcoin has saved a set ball with note, opting to consolidate positions laterally instead of correcting in depth , which again shows us the powerful force that the buying pressure on the cryptocurrency.
As long as bitcoin does not lose the support of $ 60,100 at the end of a week, which would be dangerous for the interests of those who are long (bought), everything indicates that we could be facing a simple lateral consolidation prior to an upward continuity that It will end up placing bitcoin on an absolute free rise again , something that would break through if bitcoin surpasses the highs of that shooting star that it marked at $ 67,680 .