August 13, 2022

Bitcoin worth continues to be struggling to carry onto assist at $30,000 on excessive timeframes after smashing by means of it greater than per week in the past now.

With patrons stepping in after the plunge, there’s a probability for bulls to cease the draw back with a bullish reversal candlestick setup. Be taught extra concerning the potential setup and discover out if it’s “hammer time”.

A Bullish Hammer Might Put A Cease To The Bear Market

You wouldn’t essentially realize it by the extremely bearish sentiment or the current plunge and ensuing panic throughout the crypto market.

However in case you take a look at medium timeframe worth charts, Bitcoin bulls may very well be making ready out a cease to the bleeding and stage a bullish hammer reversal.

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Japanese candlesticks are mentioned to be developed by the so-called “God of Markets,” Honma Munehisa. Homna was a rice dealer and wrote the primary ever e book in market psychology.

Candlesticks are comprised of a physique and shadow, typically known as a wick. They’re usually depicted as pink and inexperienced, or white and black (open and closed). Every candle contains info on the open, shut, low, and excessive of the buying and selling session it represents.

How the candle opens, closes, and the highs and lows set throughout the session will form the candle, and sometimes present details about what may be occurring out there — and what would possibly come subsequent.

Might this hammer put a cease to bears? | Supply: BTCUSD on TradingView.com

The Technicals Supporting A Bitcoin Reversal Setup

On BTCUSD weekly and 2-week timeframe charts, the highest cryptocurrency is engaged on a bullish hammer. A bullish hammer is a characterised as having a protracted decrease wick performing because the deal with, a small higher physique, and little to no higher shadow.

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Though the bullish sign solely takes one candlestick to counsel a backside is in, it’s only confirmed with a robust comply with by means of again to the upside.

BTCUSD_2022-05-22_09-54-51

There are many technicals supporting a reversal | Supply: BTCUSD on TradingView.com

Hammers are simplest after they comply with a string of not less than three down candles, and are supported by bullish technicals.

The bullish hammer is going on at what may very well be the tip of a wave 4 increasing triangle correction, based on Elliott Wave Precept. The MACD is retesting the zero line, a lot because it did throughout the wave 1 Black Thursday correction. Every backside, additionally coincidentally touched the decrease Bollinger Band earlier than reversing to the upside.

Associated Studying | Bitcoin Bear Market Comparability Says It Is Nearly Time For Bull Season

Will this bullish hammer affirm, and cease the massacre from persevering with?

Observe @TonySpilotroBTC on Twitter or be part of the TonyTradesBTC Telegram for unique each day market insights and technical evaluation training. Please observe: Content material is academic and shouldn’t be thought-about funding recommendation.

Featured picture from iStockPhoto, Charts from TradingView.com