Technical charts, especially the shape of candlesticks, often reflect the psychology behind the market and highlight the trader mood and behavior. Since Friday, at least two Bitcoin (BTC) candles have indicated Bullish undercurrent on low months of lowness, giving a glimpse of hope for crypto bulls.
The diagram below shows that BTC’s price drop has stopped at the 200-day simple moving average support level since last Wednesday. Daily candles for Tuesday and Friday are of special interest, as both have small bodies with long lower wicks suggesting bear errors during the 200-day SMA.
In other words, on both days, sellers originally pushed prices below the most important average, but failed to establish a foothold there, probably due to buyers who stepped in to protect the support level.
Such candles that appear after a remarkable downward tendency, as is the case in BTC, signalizes a potential bullish reversing. Dealers usually see it as proof of weakened sales pressure that can translate into a renewed bullish phase.
So BTC could jump back to Sunday’s height of about $ 95,000, over which dealers can again set the $ 100,000 sights. On the flip side, a downward break of 200-day SMA could deeper loss.
