It’s important that buyers picked up from the middle BB resulting in that beautiful double bar bull reversal pattern. It is not 100% as we expected but all in all, we can see how buyers reacted at this key support line. Remember, this is happening even with lagging momentum indicators showing that prices are extremely bearish.
Of course, they are and even from a fundamental point of view, the general cryptocurrency sentiment is negative. With this technical development, the question that we should now be asking ourselves is if there is enough for us to start picking buy opportunities in lower time frames as we load up long positions.
After last week, we saw that its low tested August 2017 highs at $115 before rebounding and clearing the middle BB to the upside.
However, towards the end of last week, there was this minor price rejection at around $170. Would that be interpreted as a minor correction before resumption of bull pressure or a retest of resistance as sellers increase their shorts at better prices? That’s how critical this week’s price action is.
There’s virtually no sell pressure from yesterday’s price action and that inverted hammer signals strong buy pressure.
Will that spill over to today’s price action and buoy buyers to break and trade above the middle BB?
In my opinion, after last week’s bull candlestick, there is a chance that the third phase of a huge bullish break out might just have begun. All we should be waiting for is a supper surge above $170 and that would be about it.
Even though we are leaning towards a potential bullish development, do you notice how price action is moving along the middle BB right along the minor resistance trend line in our entry chart? Well, this is good development.
If there is a follow through of last week’s bulls then we should see higher highs in the coming sessions with stop loss right just below the middle BB.