Aksel Kibar, a Certified Market Technician (CMT), has recently spotted a potential Gravestone Doji on the weekly Bitcoin chart, indicating a potential shift towards a bearish trend.
Kibar explained that the Gravestone Doji pattern is characterized by a long upper shadow and a close near the opening price, suggesting that the bulls lost control after attempting to push prices higher.
While Kibar noted that this pattern alone is not enough to confirm a reversal, he mentioned that a weak candle following this pattern on the 1-week timeframe could validate the potential bearish trend shift.
The Gravestone Doji was observed near a significant resistance level around $73,700, where Bitcoin had been testing new highs. Despite starting the week with a bullish recovery that saw Bitcoin retesting an all-time high above $73,000, it faced a significant correction, closing the week at $68,738.
The presence of the Gravestone Doji at this level suggests that bullish momentum may be waning, with bearish forces gaining strength. The upcoming week’s price movements for Bitcoin will be crucial, as a weak candle could confirm a reversal and mark the beginning of a pullback.
Market veteran Peter Brandt had previously suggested that Bitcoin was still in a bearish setup, pointing out an inverted broadening triangle structure that would require a weekly candle close above $76,000 to confirm a breakout.
Looking at the broader market outlook, Kibar’s chart indicates that the initial phase of the bull run, which saw Bitcoin reach a new all-time high in March 2024, came after a strong breakout from a six-month consolidation phase within a rectangle pattern. However, the presence of the Gravestone Doji at $73,700 raises doubts about Bitcoin’s continued upward momentum.
If Bitcoin fails to hold this level and a bearish candle follows, it could confirm a broader pullback. In such a scenario, Bitcoin may revisit major support levels, with $50,000 potentially acting as an initial target. Currently trading at $68,557, Bitcoin’s price movement in the coming week could be influenced by the upcoming US presidential election.
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