Bitcoin has been having a correction on the daily chart. The Day before yesterday, it produced a long bearish candle. However, yesterday’s candle came out as a doji candle. That is too on a support level of an up trending trend line. Considering all these factors, it seems that Bitcoin daily traders have to keep their eyes on it to find out its next direction. Let us have a look at the daily chart to find out what statement it makes about the next direction.
The Daily Chart
The correction started from the level of 9062.65. Look at the arrowed candle which initiated the correction. The candle was a bearish engulfing candle. A trend or a correction started with an engulfing candle always has a strong message to give to the traders. The price came down to the level of support to the up trending trend line with a good momentum. However, yesterday the price had a pause and produced a doji candle. Today’s price action seems to be bullish so far. If today’s candle ends up with a strong bullish tone, then it would be a bullish engulfing candle too. That would make the game even more interesting. The buyers would love to have a continuation and a breakout at the resistance level. On the other hand, the sellers would love to get an upward correction, then a breakout towards the downside. The H4 chart may explain the situation in an easier way.
The H4 Chart
The level of support is a proven level of support. On the last bullish wave, the price reacted to the level and went towards the North with good momentum. Thus, a breakout at this level would have a very strong selling impact. The buyers, on the other hand, are going to wait for a breakout at the level of 9062.65 to go long again. The H4 chart shows that there might be a double bottom get formed. This is what gives the buyers a slight advantage. However, the fact remains, they have to wait for the price to go all the way towards the resistance level and make an upside breakout.