Based on the price action of the past few months, it is difficult to maintain that bitcoin is still in a bull run. But what if the bulls simply needed to catch their breath and are currently gearing up for another run up? On the larger timeframes, a Japanese candlestick pattern is currently forming, called a Morning Star, which may well provide the turnaround that the bulls are hoping for.
https://youtu.be/FpaxpAFOk-M
Morning Star as catalyst for new bull run?
Bitcoin has been in a brutal bear market since the all-time high of November 2021. We can’t make less of it than that. At the time of writing, the price has lost more than 50 percent since the top, and things are not looking good on the macro front either.
This is an expected dip this is Extremely Bullish scenario for #Bitcoin they are Recking💥 Long’s filling the CME gap & then they will Reck Shorts on the way up. 💥🚀🚀🚀
Mind the Pattern 📉📈📊 pic.twitter.com/1oYOqAD4YJ
— Charles Perea (@MetaverseBLDR7) September 4, 2020
However, if you give technical analysis some credence, there may be hope on the horizon. On bitcoin’s 2 week chart a Morning Star pattern is currently forming. This indicates a possible trend reversal.
The prerequisite for a Morning Start is that we are in a severe downtrend, at least as far as the bitcoin price is concerned we can tick that off. However, the Morning Star pattern is a pattern consisting of three candlesticks, the last of which is now being formed.
Six to ten weeks of bullishness
The Morning Star pattern consists of a first candlestick that takes heavy losses, followed by a so-called Doji. A doji is a candlestick that shows the market does not know what to do with the asset in question at that moment. It is a thin candlestick with long wicks up and down.
We have already printed these and the last thing we need is a positive candlestick of about the same size as the last negative candlestick. If we manage to print this, the pattern will be complete and we can theoretically expect six to ten weeks of bullish price action.
With a Morning Star, it is quite possible that the next three to five candlesticks will turn green. Now macroeconomic conditions are still not in bitcoin’s favour, but what we have learned in recent years is that bitcoin prices are hard to predict. After all those price losses, it would be good for the bulls if the Morning Star pattern shows its value.
