Aksel Kibar, a Chartered Market Technician (CMT), recently identified a potential gravestone doji on Bitcoin’s weekly chart, suggesting a possible bearish reversal.
Kibar’s disclosure confirms that the shape of this pattern is characterized by a long upper shadow and a close close to the opening price, suggesting that bulls lost control after trying to push prices higher.
According to the market veteran, while this pattern alone is not enough to confirm a reversal, a subsequent weak candle on the 1-week timeframe would serve as validation, pointing to a possible bearish trend shift.
Bitcoin Potential Gravestone Doji
His chart data confirms that a gravestone doji appeared at a major resistance level of around $73,700, where Bitcoin has been testing new highs. For context, Bitcoin embarked on a bull recovery last week, surging to new highs above $73,000 on Tuesday.
However, this retest was followed by a sharp correction, which eventually closed at $68,738, slightly higher than the $67,937 at the start of the week. This leads to a potential gravestone doji candle formation.
The presence of a gravestone doji suggests that bullish momentum may be waning and bearish forces may be gaining strength. Bitcoin’s price action this week was extremely important. If a weak candle forms this week, it could confirm a reversal and mark the beginning of a pullback.
Notably, market veteran Peter Brandt said in a previous analysis that Bitcoin remains in a bearish setup despite the latest rally. He noted that the top cryptocurrency is still trapped in an inverted expanding triangle structure and would need to close a weekly candle above $76,000 to confirm a breakout from the pattern.
Bitcoin’s Wider Market Outlook
Meanwhile, Kibar’s chart further illustrates the broader outlook for Bitcoin. The chart shows that the first phase of the bull run began in March 2024 when Bitcoin broke out of a sideways phase within a six-month rectangle pattern.
After breaking through this rectangle,
Bitcoin
An ascending channel has been maintained, establishing higher highs and higher lows, which have guided the market's recent bullish movement. The gravestone doji at $73,700 now casts doubt on Bitcoin’s continued upward momentum.
If Bitcoin fails to hold this level and forms a bearish candle, it could confirm a broader pullback. In this case, Bitcoin could revisit major support levels, with $50,000 being a possible initial target.
This level previously served as resistance during the initial bull run and could provide a strong base of support if the reversal gains momentum. Bitcoin is currently priced at $68,557, down 0.26% in the new week. Upcoming
US presidential election
It may play a key role in determining the next step.
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