Bitcoin 'Doji' points to bullish reversal scenario as BTC holds $36K support
It is not too late for Bitcoin (BTC) to reclaim its bullish bias as it halfway paints an indecisive 'Doji' candle on the weekly chart.
In detail, Bitcoin's price correction this week to below $33,000 had it form a lower wick, suggesting that bulls bought the dip. A sharp retracement ensued and took BTC price to as high as $38,960 on Jan. 27. However, the bulls failed to hold the said week-to-date top for too long, resulting in another wick, but also pointing to the upside.
BTC price has since corrected to near its weekly opening rate of $36,200. In doing so, it has formed a transitional candlestick, called "Doji," that reflects indecision between bears and bulls. If found at the bottom of trends, Doji candlesticks could signal the reversal of price direction.
Bitcoin has been trending lower since it established its record high at $69,000 in Nov. 2021. In doing so, the cryptocurrency wiped more than 50% of its profits, even dropping below its 50-week exponential moving average (50-day EMA; the red wave), a support key support level.
But Bitcoin's strongest interim support comes in at $30,000, a level that has been capping the cryptocurrency's downside attempts since Jan. 2021. Notably, in May-July 2021, the level was instrumental in attracting accumulators that helped the BTC price climb to its record high.
"If the support around $30K holds, it's possible we will see a strong upward trend resuming," noted Crypto Batman, a pseudonymous market analyst.
Additionally, a Doji formation ahead of the BTC price hitting $30,000-support shows a weaker bearish sentiment near the level.
On the flip side, Bitcoin's bullish outlook may fizzle out if its price drops decisively below $30,000.
In detail, Bitcoin's weekly relative strength index
Read more on cointelegraph.com
