Monthly Bitcoin Bullish Candlestick ReversalHello all,
Something jumped out at me today and I thought it was of such significance I would post/publish it here for 'the record'.
Needless to say, the Bitcoin bear has been a long slow grind and I for one shall be happy to see it go. That appears to be happening now as more and more anecdotal evidence builds for both broader market adoption and public interest in Bitcoin related exchange listed trading vehicles. Aside from the bullish fundamental developments, we need to see some technical evidence of a reversal and I believe this one chart is just the kind of evidence I need to see. Rarely do we see valid bullish candle patterns appear on the higher time frame charts and if/when they do we ought to pay special attention. Sometimes however we lose sight of the forrest through the trees and time passes between visits to those higher time frame charts. Indeed, today a student pointed out this monthly chart to me and I almost fell off my stool...lol
This appears to me to be a classic 'inside' reversal pattern. Our group deemed it a 'bullrami' a while ago (was such a funny discussion) as it really isn't a harami but we often found bullish reversals worked off it. Simply put, the pattern suggests a break of the inside bar's high on subsequent bars produces a 'buy' signal and a break of the first bar's lows represents your stop. This event did and has occurred and I for one am very please to see it. While a test of the lows of the bullami are perfectly realistic, in my opinion a serious break ins't likely soon. Indeed, the break of the inside bar's highs suggests the bulls have the ball for now.
Since this price pattern represents a huge $100/coin risk, trading off it in itself isn't the best idea. But, if long setups present themselves I will feel like (at least for the next few months) we have the wind at our backs and not in our faces.
Thanks and I hope you can benefit from my analysis,
Brian Beamish
aka The Rational Investor
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