Today we got a weak example of a three-day candlestick pattern known as “three white soldiers” appearing in the daily candlestick chart for Bitcoin. I say weak because while it does meet most of the criteria which is;

Three long and green candlesticks in a row.

Appearing after a defined downtrend.

Each of those candles must open above the previous day’s open.

Today we had a crossing of two major moving averages in Bitcoin with the shorter-term 50-day crossing below the longer-term 200-day simple moving average. This type of cross between a longer and shorter-term moving average is known as a bearish cross or a death cross.

If there was any doubt that a spot Bitcoin ETF would move the market higher, that was surely removed today. After being denied approval to convert their Bitcoin trust into a physically backed spot Bitcoin ETF, Greyscale had a victory in overturning that ruling. The U.S.

Yesterday, after spending 8 weeks with extremely low levels of volatility, Bitcoin broke from its dormancy with a sharp break to the downside.

On a short-term daily candlestick chart with a simple Fibonacci retracement spanning from $24,750 up to $31,862, we can see that the 38% retracement level at $29,145 has been acting as support for the entire last week and the start of this one. This also matches up to the 50-day moving average and the top of our Ichimoku cloud.

BTC is at a precarious price precipice, traders who are tolerant to slightly riskier swing trading should do as follows.

Short-term Forecast

After the CPI data came out showing lower than expected inflation numbers one would assume that a bounce in Bitcoin was warranted. However, unlike other assets like the like gold and silver as well as markets such as the Nasdaq 100, Bitcoin did not join in the widespread market bump.

Utilizing the most popular kind of Japanese chart, the candlestick chart we can gather different findings when using different times scales.