There are about four days left to go before the first half of 2023 in crypto comes to a close, and with it the 6M Bitcoin candle.
The high timeframe BTCUSD chart is close to forming a potential bullish reversal pattern, but is currently falling short of surpassing the trigger point. Here is a closer look at why Bitcoin has only four days remaining to push above $32,000 and cement a reversal across the crypto market.
In technical analysis, high timeframe signals are always the most dominant, so what happens in the next few days with Bitcoin is crucial to determining the future trend.
The 6M candlestick is about as high timeframe as it gets, making any signals on the chart especially powerful. This is precisely why a possible morning star pattern is especially notable.
The 18-month long pattern includes the worst of the bear market, the local bottom around November, and all of 2023 thus far. And all of this happens — more than 500 days of price action — in just three candlesticks.
A morning star pattern could form on the 6M | BTCUSD on TradingView.com
Bitcoin Must Rise Above $32,000 By 6M Candle Close
Importantly, Bitcoin is currently finding resistance at $32,000 per coin challenging to crack through. The resistance exists due to it being the 50% retracement point of the previous uptrend. It is also the mid-point of the large black down candle making up one-third of the morning star pattern.
A morning star pattern is a bullish reversal pattern in Japanese candlestick analysis. Such signals should be taken into context of the broader market, such as if it appears at support or resistance, or during oversold or overbought levels.
BTCUSD is still oversold enough on high timeframes, and the pattern formed after sweeping $20,000 resistance turned support. If the pattern confirms and takes out $32,000 at close, Bitcoin could next take a shot at former all-time highs, and possibly exceed them in the next several candles.
Tony is the author of the CoinChartist (VIP) newsletter. Follow @TonyTheBullBTC & @coinchartist_io on Twitter. Or join the TonyTradesBTC Telegram for daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com
