A shooting star prevents bitcoin’s free rise

To trust in a larger and more sustainable bullish context over time, it is necessary for the price of bitcoin to overcome the resistance zone that it presents at 65,520 dollars, which are the maximums that it marked last April and that were the origin of the last notable downward correction in the queen of cryptocurrencies, which reached $ 28,800 in mid-June.

Well, last week this resistance was overcome but it was temporarily and vulnerable, something that does not surprise me since it was reached with high overbought.

I already warned you in the last analysis we published on bitcoin, that in this type of situation to trust the breakdown of such a relevant resistance and to remove the risk of attending a new bearish stage, the minimum required was for bitcoin to break that resistance of $ 65,520 at the end of a couple of weeks and it even pointed out that being so close to the monthly close in October, the ideal was to wait for a monthly close above that resistance before launching the bells to the flight.

Think that exceeding $ 65,520 in this way, the bitcoin price curve would enter what is known as an absolute free rise, which is the most bullish technical situation that exists.

At the end of last week, the price of bitcoin displayed a weekly candle line which is known in oriental technical slang as a shooting star. The long shadow of that candle perfectly reflects the failed attempt to overcome resistance and the subsequent bearish counterattack.

These types of candles in the shape of a shooting star should be watched because when they appear after a strong rise, as is the case with bitcoin, they can warn us of a possible ceiling in it and be the point of origin of a correction.

To confirm these ceiling implications, operators usually require two daily closings or a weekly close below the minimum of that candle which is $ 60,000.

This level is being lost at the moment, so you have to be vigilant if you want to avoid a fall that could seek the upward guideline that arises from joining the July and September lows, which is currently running in the $ 50,000 area.