More

    Bitcoin Bulls Bring Out Hammer Of Thor Reversal, But Support Must Hold

    Bitcoin price is back now at the mid $30,000 range after a quick plunge below $30,000 support this week. The short lived dip below support finally resulted in a worthwhile bounce, leaving behind a reversal signal that in the past has had god-like results.
    If crypto bulls can hold at current prices by the time the weekly candle closes, a larger upward move could be on the horizon.
    Bitcoin Price Forms Bullish Reversal Signal On Weekly
    The wild returns across crypto in 2021 are now a distant memory, having every last penny of the Bitcoin bull run from January 1 forward wiped out in the most recent drop below support.
    For months now $30,000 has held as support. But bears were able to push the price of the leading cryptocurrency by market cap to the yearly open at $28,800.
    Related Reading | The Missing Ingredient From A Full On Bitcoin Reversal
    It was at that significant support level that Bitcoin bounced, and bulls were finally able to gain some momentum over the last few days.
    The respectable attempt by bulls to resume the greater bull rally could hold, now that a bullish hammer reversal has formed on the weekly chart. For the signal to be valid, Bitcoin would need to close the weekly at $34,500 or higher.

    A hammer reversal candlestick has preceded each bullish impulse so far | Source: BTCUSD on TradingView.com
    Dropping The Hammer On Bears: The Reversal Signal Explored
    A hammer is a single Japanese candlestick that shows an extremely bearish move that was essentially blocked by bulls. Support was breached, but bulls kept on buying anyway – leaving a long wick or hammer handle below what’s left of the candle body or head.
    A single candle might seem insignificant as a signal, but in the past, it was the past things bears saw before Bitcoin went on a tear. This third hammer since the bear market bottom, could put the final nail in bear’s coffins.
    Related Reading | Bitcoin Price Breaks Below $30,000 Support, Erasing 2021 Rally
    Each previous hammer marked a major bullish impulse brewing in Bitcoin, and each time the LMACD – a momentum indicator was red on the histogram, but ready to turn upward.
    The lagging indicator eventually crosses bullish and the top cryptocurrency goes on a few hundred percent rally – rinse and repeat. After one of the worst monthly “rinses” on record, the market is cleansed of leverage and it could keep the crypto cycle going a while long if there’s another bullish crossover.
    As the chart above shows, hammers on the weekly have a lot of clout, however, they have also failed in the past. There’s a green hammer – slightly different from those outlined in boxes – when Bitcoin touched $6,000 in late 2019. However, this false bottom led to Black Thursday, where there was no such signals in sight. It wasn’t again until Bitcoin held a retest of $10,000 that the next hammer formed and another impulse began.
    Featured image from iStockPhoto, Charts from TradingView.com

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 41,363.00
    ethereum
    Ethereum (ETH) $ 2,456.12
    tether
    Tether (USDT) $ 1.00
    binance-coin
    Binance Coin (BNB) $ 331.94
    cardano
    Cardano (ADA) $ 1.30
    xrp
    XRP (XRP) $ 0.745529
    dogecoin
    Dogecoin (DOGE) $ 0.211547
    usd-coin
    USD Coin (USDC) $ 0.999437
    polkadot
    Polkadot (DOT) $ 16.44
    binance-usd
    Binance USD (BUSD) $ 1.00
    uniswap
    Uniswap (UNI) $ 21.26
    bitcoin-cash
    Bitcoin Cash (BCH) $ 540.49
    chainlink
    Chainlink (LINK) $ 21.68
    litecoin
    Litecoin (LTC) $ 143.29
    solana
    Solana (SOL) $ 34.44
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 41,381.00
    matic-network
    Polygon (MATIC) $ 1.05
    stellar
    Stellar (XLM) $ 0.287943
    ethereum-classic
    Ethereum Classic (ETC) $ 50.52
    theta-token
    Theta Network (THETA) $ 6.10
    internet-computer
    Internet Computer (ICP) $ 42.06
    vechain
    VeChain (VET) $ 0.087835
    dai
    Dai (DAI) $ 1.00
    compound-usd-coin
    cUSDC (CUSDC) $ 0.022080
    okb
    OKB (OKB) $ 18.51
    filecoin
    Filecoin (FIL) $ 51.63
    cdai
    cDAI (CDAI) $ 0.021544
    tron
    TRON (TRX) $ 0.063762
    terra-luna
    Terra (LUNA) $ 10.88
    monero
    Monero (XMR) $ 236.71
    aave
    Aave (AAVE) $ 317.88
    eos
    EOS (EOS) $ 4.05
    compound-ether
    cETH (CETH) $ 49.28
    ftx-token
    FTX Token (FTT) $ 34.66
    amp-token
    Amp (AMP) $ 0.074179
    cosmos
    Cosmos (ATOM) $ 12.72
    neo
    NEO (NEO) $ 46.26
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.127755
    pancakeswap-token
    PancakeSwap (CAKE) $ 15.79
    shiba-inu
    Shiba Inu (SHIB) $ 0.000006
    the-graph
    The Graph (GRT) $ 0.618929
    leo-token
    LEO Token (LEO) $ 3.04
    algorand
    Algorand (ALGO) $ 0.839571
    bitcoin-sv
    Bitcoin SV (BSV) $ 139.51
    celsius-degree-token
    Celsius Network (CEL) $ 6.17
    maker
    Maker (MKR) $ 2,889.69
    klay-token
    Klaytn (KLAY) $ 1.04
    tezos
    Tezos (XTZ) $ 3.02
    iota
    IOTA (MIOTA) $ 0.870328
    axie-infinity
    Axie Infinity (AXS) $ 43.35