Over the past 24 hours, Bitcoin’s price fell nearly 2% to around $62,758, despite a significant inflow of $202.5 million into Bitcoin ETFs by August 26. But what’s really capturing the attention of the crypto community is a unique pattern on Bitcoin’s monthly chart, pointed out by crypto analyst HODL15Capital. Let’s dive into what this candle could mean for the market.
Mysterious Candle Formation
HODL15Capital recently tweeted that the latest monthly candle for Bitcoin is one of the most interesting ever seen. He described it as “arguably the most interesting monthly candle in Bitcoin’s history.”
The candle, known as a “dragonfly doji,” usually suggests a possible change in the market’s direction. However, this pattern might even indicate the end of a consolidation phase, where Bitcoin’s price has been moving sideways and the start of a clearer trend, either upward or downward.
Meanwhile, the unique combination of its opening, closing, and overall price range has caught the attention of many traders and analysts.
Bitcoin’s $110K Breakthrough?
FXPro senior analyst Alex Kuptsikevich suggests this pattern might show a recovery attempt after a tough start to the month, potentially indicating an end to the negative trend that began following Bitcoin’s all-time high in March.
However, Kuptsikevich also cautioned that it’s too early to confirm this pattern’s significance since the month isn’t over yet. He explains that Bitcoin needs to overcome several technical challenges, especially breaking out of a downward trend that has held since March.
A significant move above $68,000 could break this downtrend, while a new high above $74,000 might push Bitcoin into uncharted territory, with the potential to soar to $110,000.
Market Sentiment Point to Downturn
On the other hand, some analysts remain skeptical, as they believe that market fundamentals and investor sentiment play a more crucial role than technical patterns.
As the recent market movements have been more about external factors, like the German government selling Bitcoin and the distribution of BTC from Mt. Gox. Andersson also predicts that upcoming decisions from the Federal Reserve and the U.S. elections will have a more substantial impact on Bitcoin’s price.
What’s Next for Bitcoin?
As Bitcoin hovers around $62,750, the dragonfly doji has shifted to a hammer candlestick, which is also seen as a bullish signal. This change suggests that Bitcoin might be gearing up for an upward move, but with many factors at play, it’s hard to predict what will happen next.
Also Read: Will Fed Rate Cuts Ignite a Bitcoin Bull Run? What to Expect for BTC Prices!
Source: https://coinpedia.org/news/is-bitcoins-mysterious-candle-the-key-to-ending-its-downturn-top-experts-weigh-in/