Bitcoin price has been flying over the last few weeks, ever since the cryptocurrency broke free from its tight trading range and took out $10K resistance. Within days, the cryptocurrency found itself trading over $12,000, where it has failed to hold thus far.
For bulls to keep the momentum going, this weekly close is especially critical. Here’s why, along with which levels bulls must defend on weekly and monthly levels for the rally to continue.
Minor Crypto Market Correction, Or At Risk of Reversal?
The leading cryptocurrency by market cap spent nearly three full months consolidating before taking out resistance at $10K. The key level, as expected, triggered widespread FOMO across the crypto market and helped altcoins break out into explosive rallies of their own.
Bitcoin has started to pull back, among one of the most significant corrections since the uptrend began back in March. The cryptocurrency has increased in value by over 230% from Black Thursday lows and is gearing up for a new long-term uptrend.
But before that can happen, bulls must defend current levels and ensure the weekly candle doesn’t close as a bearish reversal pattern.
BTCUSD Weekly Evening Star Doji Reversal Pattern | Source: TradingView
Bitcoin Weekly, Monthly, And More At Risk Of Evening Star Doji Pattern
Bitcoin price action as of this week pushed the cryptocurrency to a yearly high of $12,400 before a rejection took the asset down by nearly $800. The crypto asset is now making another attempt to get back above $12,000 – something that bulls must achieve to ensure that the weekly candle doesn’t close with an ominous pattern.
If BTCUSD closes at current levels, the cryptocurrency is at risk of erasing much of its recent gains thanks to an evening star doji pattern forming on weekly timeframes.