Outside Reversal Pattern For Bitcoin. Is The Bottom In?
Beautiful weekly candle. Not only does the candle have a long wick down and massive bullish body, but it happened at a key support with an outside reversal, also known as an outside bar. Many also refer to the candle as bullish engulfing.
From investopedia: An outside reversal is a price pattern that indicates a potential change in trend on a price chart. The two-day pattern is observed when a security’s high and low prices for the day exceed the high and low of the previous day’s trading session. Outside reversal is also known as either a bullish engulfing (after a downward price move) or a bearish engulfing pattern (after an upward price move) when observed on candlestick charts.
Either way, this is the candle bulls have been dreaming of, which "should" indicate a market bottom, at least for a while. $18,500 is looking like the first higher low after the market crash to $17,600.
The 200 MA still looms ahead, alongside a lot of other key resistance levels. Too early to celebrate, but an encouraging week.
From investopedia: An outside reversal is a price pattern that indicates a potential change in trend on a price chart. The two-day pattern is observed when a security’s high and low prices for the day exceed the high and low of the previous day’s trading session. Outside reversal is also known as either a bullish engulfing (after a downward price move) or a bearish engulfing pattern (after an upward price move) when observed on candlestick charts.
Either way, this is the candle bulls have been dreaming of, which "should" indicate a market bottom, at least for a while. $18,500 is looking like the first higher low after the market crash to $17,600.
The 200 MA still looms ahead, alongside a lot of other key resistance levels. Too early to celebrate, but an encouraging week.
scott.melker@texaswestcapital.com