Micro-trends suggest a new rise in Bitcoin price

State of Bitcoin

10 days ago on January 14th, Bitcoin hit a low of $162 as weak hands panic sodl. Since then, we have seen a dramatic shift in trends leading to a series of upward micro trends positioned inside of a larger macrotrend.

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Last month, we repoted on how hard the Bitcoin price was crashing and referenced how Elliot waves suggested that a trend reversal was coming soon. Elliot waves were created by Ralph Nelson Elliot (1948). Using his wave theory he was able to predict the day that the Dow Jones’ 13 – a popular stock market index – month bearish correction ended. The pattern looks like this:

elliotwavetheory

 

Guess which stage are at in?

The most popular position on tradingview is long showing the microtrends follow certain candle stick formations

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Lets go over the different candle stick formations.

The Long-Legged Doji, according to investopedia:

It is a type of candlestick formation where the opening and closing prices are nearly equal despite a lot of price movement throughout the trading day.

When such a pattern is seen, it signals the indecision of the market regarding the upcoming trend. The Doji is followed by a sequence of bullish engulfing patterns

A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or “engulfs” the previous day’s candlestick.

This trend suggests that the bulls have taken control of the market. However, a trader must take into account volume and previous prices.

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Image(s): Shutterstock.com