August 13, 2020

A technical analysis of the Bull Hammer Bitcoin exchange rate speaks of the start of the BTC rally

A technical analysis of the Bull Hammer Bitcoin exchange rate speaks of the start of the BTC rally

Recovering $ 780 in Bitcoin from an 18-day low neutralized the bearish scenario, but now Strong follow-up is required to bring bulls back to the market, writes Omkar Godball 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 technical analysis of the Bull Hammer Bitcoin exchange rate speaks of the start of the BTC rally

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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).

A technical analysis of the Bull Hammer Bitcoin exchange rate speaks of the start of the BTC rally

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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.

A technical analysis of the Bull Hammer Bitcoin exchange rate speaks of the start of the BTC rally

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