Bitcoin Forms Terrifying “Gravestone Doji” Candle on Weekly Chart

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As a seasoned analyst with a decade-long career in the cryptocurrency market, I have seen my fair share of bull runs and bear markets. The recent “gravestone Doji” candle formation on Bitcoin’s weekly chart has me raising an eyebrow, not because it’s unprecedented, but because it comes at a time when many were expecting a new all-time high.

Bitcoin, the top cryptocurrency in terms of market value, recently created a pattern known as a “gravestone Doji” candle.

Just as its name implies, this type of candle usually signals the conclusion of an uptrend (bullish phase), serving as a bearish marker instead.

Uhhhh g-guys…

Are we sure that we wanna close the weekly like this? 😳$BTC

— Byzantine General (@ByzGeneral) November 3, 2024

As a researcher, I observe from my weekly analysis that the dominant cryptocurrency’s price chart exhibits a prolonged upper wick, suggesting that the bears have maintained their stance following an unsuccessful bullish attempt to elevate the price. The minimal lower wick signifies that the closing price on the weekly scale is likely to dip below the opening price, indicating a potential downward trend.

This week, the price of the leading cryptocurrency soared past $73,000 for the first time in months, indicating a potential new record high. But, surprisingly, the bulls encountered a sudden reversal, causing the top crypto to fall back to around $67,000.

Despite BlackRock’s IBIT showing remarkable growth, Bitcoin didn’t manage to reach $74,000. Some skeptics argue that this could be because fewer funds are flowing into Bitcoin ETFs compared to gold ETFs, as mentioned in an article by U.Today.

In a recent market drop, the cryptocurrency fell beneath the lower boundary of the Bollinger Bands chart, which is displayed over a four-hour period. This might suggest another warning signal for the optimistic investors, or bulls.

$BTC 4H starting to breach lower BB

— Cheds (Trading Quotes) (@BigCheds) November 3, 2024

In a more positive outlook, Bitcoin displayed a bullish divergence on the hourly chart. For traders who are optimistic (bulls), this could be seen as a potential bullish signal. This is because the strong bearish trend may be starting to lose steam, at least temporarily.

The bearishness in yet to put a significant dent in trader sentiment, with the widey followed l”Fear and Greed” indicator still showing 74 out of 100 points. 

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2024-11-03 21:07