BTC printing Dragonfly Doji Candle on Daily - Potential downside
Updated
Dragonfly Doji candle patterns are known as trend reversal patterns at the tops and bottoms of major runs. BTC has printed several at critical levels on both the support 9k area and the 12k resistance. The next candle following this Doji will shed insight on the direction for BTC. being that its forming near the top of the resistance triangle its leads me to believe we will see further downside from here. Early to tell, lets see what the next candle does.
Note
As we can see BTC printed two consecutive Doji Candles followed by a $300 run. Corresponding with testing the upper ceiling of the Descending Triangle. A breakthrough and test of the trend line could upen the gates for a higher run.Rejection here at the 10.9-11.0 levels could spell a retreat to test support in the 9k regions.
Note
Dragonfly Doji played out textbook in theses past few candles.
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