Bitcoin BTCUSD Weekly Bearish Engulfing & BTC CME Candlestick Comparison
On the left, we have BTC CME Futures, and on the right we have BTCUSD Coinbase.
We are going to start with Coinbase on the right. This is a Bearish Engulfing
These can be a bearish reversal pattern and tends to work fairly well. They lead to reversals roughly 65% of the time
Based on my observations in Bitcoin over time, these aren't usually tops. They're short-term reversals. that eventually a higher high is made from. More often than not they're like warning sign that a reversal is coming, less so there is one
It is still a very bearish signal and we might have seen the top. I tend to think one more push up to really confuse things because a lot of people still see this as having topped
Bitcoin CME on the left shows a the wick on the current weekly hammer touching the topside of the weekly candle from several weeks before
This is right where the Bollinger Band basis is. Below there this should head to new lows next. Holding here, however, will lead to a push to around $90K. I still think $89K is the high
Note: Bitcoin has held above the Bollinger Band basis for three weeks now. This has never happened before in a bear market. Do not take this as me saying the bear market is over, but it is an observation that may be worth remembering if it does end up the bear market bottom is in.
My next few posts will suggest the bottom isn't in, however.