Bitcoin Closes October w Bearish Engulfing Pattern
These are more often than not reversal signals. However, they can come ahead of a "top". That said, I more so mean a cyclical top. We've already done that, so perhaps this is plenty for pushing some extreme downside.
I believe we have a bullish start to November, to add confusion and create some upside wick. Not a huge move.
As long as no new highs are made, this is the final nested 1-2 before one of the biggest drops in Bitcoin ever
The bearish engulfing happened at the monthly Bollinger Band basis, which was tapped twice and proven as resistance. A move down to the lower BB while the bands expand would likely support disastrous down-move. In fact, this is the primary signal that has told me this was going to be huge all along. Tons of energy built up.
The LMACD looks like it wants to diverge lower, not crossover. the Stochastic is being rejected by a key bull market barrier level
Price looks to be retesting the underside of a long-term uptrend channel.
Overall a very bearish monthly close
Switching to the weekly on the second chart, you can see how the channel boundary acted as support for a bounce, and then resistance at the recent local high. If we do drop and take out the $60K low, it isn't just a wave 3, but it completes the right shoulder of a head and shoulders top. This won't be good and has a target of $29K