Bitcoin has created a hammer candle on the three-day chart, a warning of an impending bull reversal. However, an opportunity above the candle's high of $7,380 is required to verify the short-term trend change.
A move above $7,380 would activate twin bullish cues on the 4-hour chart and permit a rally to $8,000.
Acceptance below Monday's low of $6,515 would imply a continuation of the sell-off from recent highs above $10,000.
Bitcoin must break above $7,380 to verify a short-term bull reversal and invite stronger buying pressure, the three-day chart indicates.
Specifically, the highest cryptocurrency by market price created a hammer candle within the three days to Nov. 26. A hammer candle, which comprises of an extended lower shadow and alittle upper body, means the three-day period began with pessimism, but ended on a more optimistic note.
Stepping back, the cryptocurrency saw selling pressure near $7,350 on Nov. 24 and fell to six-month lows near $6,500 on the subsequent day. The drop, however, was short-lived and costs quickly rose back to $7,380 before printing a UTC close at $7,159 on Nov. 26. The recovery from $6,500 to $7,159 represents the long lower shadow of the hammer and therefore the spread between $7,350 and $7,159 represents the body.
While the pattern is taken into account a bullish signal, traders usually await confirmation within the sort of strong follow-through, preferably a convincing move above the high of the hammer candle. meaning an opportunity above $7,380 is required to verify a bullish reversal and possibly cause a stronger recovery rally.
BTC is changing hands at $6,917, representing a 2.4 percent drop on a 24-hour basis, after a sudden drop soon before press time.
Many within the investor community are associating the newest decline with confirmation of a $49 million crypto theft at the South Korean exchange Upbit. The exchange said large ether transfers had been made to an unknown wallet.