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.

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:

 

Guess which stage are at in?

The most popular position on tradingview

is long showing the microtrends follow certain candle stick formations

 

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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