Bitcoin Forms a Doji Top Pattern, Analyst Sees $6,500 BTC/USD Price in Near Future
- Doji top formed only on Bitstamp and no other major exchanges, “broader volatility most likely”
- A short term bounce at about $7,500 is a possibility
We haven’t even recovered completely from the drop below $8,000 and we are yet again in the throes of reds. The bears took charge yet again yesterday when from the high of $8,700, we dropped down to $7,730 level.
At the time of writing, the leading cryptocurrency has been trading at $7,854 with 24-hours loss of 8 percent. The past 7-days change has turned red as well by 9.33 percent. Bitcoin is meanwhile managing the daily trading volume of over $23 billion according to Coinmarketcap data, and per Messari’s real 10, 24 hour volume of $1.5 billion.
BTC/USD chart, Source: TradingView
Initially, the move down was to about $8,300 and if Bitcoin had managed to push back and close above $8,200, we would have been prevented from taking a drop below $7,000. But now we have a “nasty candle” on the daily chart that resulted in a continual downward price action having us in the high $7ks.
On June 2nd, crypto analyst, The Crypto Dog spotted “Doji” on the weekly close. The Doji is a transitional Candlestick formation that indicates indecision between the bulls and bears. This is usually formed at the bottom and top of the trends and hence considered as a sign of a possible reversal of price direction. Having said that a Doji can also be viewed as a continuation pattern.
The market is basically exploring both the upward and downward options but can't commit either way.
The Crypto Dog also share the possibility of a short term bounce at about $7,700 level, however, given the market condition he later tweaked his levels stating, “Looks ugly. Likely to hit $7500 before any bounce.” But a lot more can be expected in the future as he says, “Ultimately in a few weeks time $6500.”
Veteran market trader, Peter Brandt also called out a Doji top on the weekly chart that began the correction.
— Peter Brandt (@PeterLBrandt) June 4, 2019
However, he points out that this doji top is only on Bitstamp and no other major exchanges have this pattern. This means it is to be seen how the market will play out in the short term but “some broader volatility most likely,” to be encountered.
Bitcoin’s price is $50,659.62 BTC/USD exchange rate today. The real-time BTC market cap of $944.59 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $14.1 Billion and live coin value change of BTC 4.51 in the last 24 hours.