Case for bull remains strong
Despite the current calm on the market, further, larger price movements could be imminent in the coming days. However, analysts are debating whether the movement will be bullish or bearish.The doji candle is a technical chart indicator of indecisiveness on the market, and could currently indicate a return to a bearish trend.
The popular trader “MoonOverlord” shared a chart on Twitter that is supposed to show the historical accuracy of this indicator and commented on the chart saying “Will the halving solve the problem? The chart shows how Bitcoin showed a larger doji candle five times last year and then reversed the trend.
In order to confirm another uptrend, Bitcoin needs to break through the resistance zone between $9,170 and $9,550 according to Rager. Should Bitcoin break through this level, the next target would be the February high of $10,500.
Also, the current situation on the crypto market may not be comparable with the conditions of the last few months. On the one hand, this is obviously due to the Halving of Bitcoin, which will take place on May 11. Furthermore, the data from the spot market shows that Wednesday’s rally was almost exclusively driven by small investors who made purchases on the sports market.
Author : Jake Simmons