The recovery of the Bitcoin rate by $780 from an 18-day low neutralized the bearish scenario, but nowa strong continuation is needed to bring the bulls back into the market, writes Omkar Godbole of Coindesk.
The main cryptocurrency reached around $ 9,600 dollars - the lowest since September 1 - during Asian trading hours on Thursday and rose to a maximum of $ 10,380 during US trading hours.
It is noteworthy that the price rebound from $ 9600 to $ 10 380 took the form of a candle called the “bull hammer”.
A bull hammer includes a long bottom shadow,a short body and a small upper shadow (or none at all), that is, visually resembles a hammer, so it is very easy to notice on the chart. The hammer is formed on a downtrend, where the price ends the day on a positive note or near the daily maximum.
This figure is considered an early warning ofthe upcoming rally. Nevertheless, traders, as a rule, expect a strong continuation - closing above the maximum of the hammer candle, so you need to pay attention to today's close by UTC. A candle above the hammer maximum of $ 10,380 is likely to cause more pressure from buyers and lead to an increase to $ 11,000.
A “bull flag” has also formed on the chart. A breakthrough, if confirmed, will mean the resumption of the rally from $ 9600 and will create space for the rally up to $ 10 950 (target according to the method of measured movement).
The large-scale entry of bulls to the market requires a breakthrough of a three-month declining triangle, the upper and lower lines of which are currently located at $ 10,822 and $ 9,450, respectively.