[Bitcoin] Bear Trap and Rebound Potential? (9/3)

9月3日

Hello, this is Chartist.

Let’s dive into a brief analysis of the Bitcoin chart.



First, let's look at the daily chart.



Recently, Bitcoin has been declining and consolidating for five days before forming a bullish engulfing candlestick yesterday.

This indicates that the bullish momentum of one day is greater than the bearish momentum of the past five days.

A bullish engulfing candle can often be an early sign of a trend reversal.



Next, let's look at the 4-hour chart.



In the 4-hour chart, a Bear Trap pattern is observed.

A Bear Trap occurs near the lower boundary of a channel, where the price drops below the channel only to quickly recover back within it.

If a swift recovery follows, there is a high probability that the price will reach the upper boundary of the channel.



Now, let's move on to the 15-minute chart.



Bitcoin has successfully broken above a red trendline and completed a retest, confirming the breakout.

Following this, it encountered resistance at a double-top pattern but managed to break through with a decisive bullish candle.

The previous resistance level around 58.8K has now flipped to support, demonstrating an S/R Flip, where resistance turns into support.

The S/R Flip is a key concept in technical analysis, indicating a significant shift in market dynamics where former resistance levels become support zones.

Currently, the former resistance is holding as support, which is a bullish signal.



< Summary >

1. A bullish engulfing candle has appeared after five days of decline, suggesting a potential reversal.

2. The emergence of a Bear Trap pattern near the lower channel boundary increases the likelihood of a rebound if the channel is maintained.

3. An S/R Flip is in play, with previous resistance now acting as support, reinforcing the case for a bullish reversal.