Everything is dark in the crypto market, specifically for Bitcoin. A potential Morning Star reversal pattern could lead to a bullish story returning faster than light speed. This is an in-depth look at the potential Japanese candlestick pattern reversal and the conditions required for its confirmation.
Crypto Bloodbath: It’s Always Darkest Before The Dawn
Although the origin source is uncertain, 17th century English theologian and historian Thomas Fuller is credited with the quote, “it’s always darkest before the dawn.”
It has been proven time and again by Bitcoin and cryptocurrency markets that it is the right time to purchase for the greatest return on your investment, even when everything seems terrible. It is what contrarian phrases like “buy the blood in the streets” and “be greedy when others are fearful” are meant to convey.
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Bitcoin might be facing a steep decline of 38% from its highs, and an uncertain macro-environment. But just as Fuller’s quote would indicate, the potential for a reversal is possibly here and it could begin with the dawn of a Morning Star pattern.
Bitcoin price must close $53,500 for conditions to be met | Source: BTCUSD on TradingView.com
You Must Confirm a Morning Star Reversal by Reclaiming The Level Bitcoin
On weekly Bitcoin charts, the leading cryptocurrency by market cap can be seen with a massive down move and corresponding red candle, followed by a green doji indicating a pause in the trend – or a period of indecision. Doji are used to indicate continuation or potential reversal.
Bulls must close the week’s candle by making an aggressive move similar in magnitude to that of the doji. This will mark the beginning of the Morning Star pattern reverse.
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Based on Japanese candlestick pattern, A Morning Star is bullish reversal. The pattern must be closed above $53,500, or 50% below the previous red candle. If these conditions do not exist, the bears can continue to manage crypto market price movements.
Morning Star reversals are bullish-breaking 78% of all the time. According to Thomas Bulkowski (who ranks 6th among 103 candlestick patterns) they rank 6th in overall performance.
Topping of the morning for ya #Bitcoin – or should I say bottom? Learn more about Japanese candlestick patterns here: https://t.co/9VciIY9hBn pic.twitter.com/Z4TVeGabtB
— Tony “The Bull” Spilotro (@tonyspilotroBTC) December 15, 2021
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Featured image taken from iStockPhoto. Charts from TradingView.com