If we look at the Bitcoin price with a larger time frame in years, we will notice an interesting pattern of the rise and fall of the Bitcoin price. In the short term, Bitcoin price just closed the weekly candle above $50,000, which is a temporary good signal.
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Bitcoin Price Closes Weekly Candle Above $50,000, But Still Below Resistance
In the immediate future, along with the move to close above $50,000, Bitcoin price has created a weekly “bullish engulfing” candlestick pattern, also known as a “bullish engulfing candle” pattern.
- Last Christmas week, the candle closed higher than the high of the previous candle, showing that the buying power is temporarily overwhelming. Both of these candlesticks combined opens a good signal for this week. According to technical analysis theory, the bullish engulfing pattern will forecast green candles for the next week.
- However, the nearest resistance for Bitcoin price is the $53,000 region that has yet to be conquered. As discussed in the previous post, this resistance at $53,000 is likely to be the sideway and also the EMA100 of the 1D.
If the bullish engulfing candlestick pattern completes, next week BTC price could reach $55,000 after breaking above the overhead resistance.
Rules from Bitcoin’s annual candlestick chart
Rarely is the annual candlestick chart observed so often. However, this is now the end of the year, very appropriate to look back on the entire price increase process over the years.
- Easy to see, Bitcoin price fluctuates according to The rule is that every three years of green candles, there are five red candles. This suggests a scenario that 2022 will be a year of red candles. This can be debatable when Bitcoin is completely different now than it was 10 years ago.
- If you look closely, you will see that the 3rd year candle in a three year cycle green candle is usually the strongest green candle except for 2021. In 2013 BTC price increased by more than 5,000%, 2017 increased by more than 1,300%, but 2021 increased only about 75%. Can see, As time goes on, Bitcoin’s price increase slows down (still far superior to other assets, of course).
According to the above logic, 2022 will probably be the year of Bitcoin price correction. Many analysts believe that if “winter” occurs, it is unlikely to be as serious as in the past.