Yesterday’s daily candle formed a Doji after bullish movements were recorded on Friday.
A Doji candle is a candle where the open and the high is around the same point.
A Doji candle formation typically represents uncertainty from traders and is being followed up with more bearish movements today.
The bullish movements which took place on Friday failed to close above resistance at $3684 and today’s downward movements decrease the likelihood that the next significant move we will be bullish.
To the downside, the next significant support level to monitor is $3476.
Price is currently trading between two levels.
Price mostly consolidated at the point of a bullish break in January yesterday.
However, it has since dropped below with today’s downward movements and has met some support at $3576 which was the point of buyer liquidity during bearish drops in mid-January.
- Price failed to overcome resistance at $3684 on Friday and has since retraced.
- Price formed a Doji candle yesterday reflecting uncertainty from traders.
- Price consolidated around the point of a bullish break yesterday but has since dropped below and traded between this point and a point of buyer liquidity at $3576.
- In the event of a drop below $3576, the next support level to monitor is $3476.
Bitcoin [BTC] Price Action – Doji Candle Precedes Price Drop was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.