Bitcoin’s Potential to Surge Supported by Bullish Candle Hammer

Bitcoin traders are optimistic about a possible reversal of the recent downtrend as they point to a “bullish candle hammer” on Bitcoin’s weekly price chart. Glassnode founders Jan Happel and Yana Allemann expressed their belief that Bitcoin is about to surge higher. They highlighted the bullish hammer candle formation on May 5, which indicates a potential reversal. Pseudonymous trader Mister Crypto also noted this pattern and suggested that the aggressive close near the candle open signifies a shift in sentiment.

According to market analysts from Negentropic, the pullback experienced during the past week could be viewed as a healthy correction before Bitcoin’s price moves higher. They explained that such corrections often retrace either 50% or 61.8% of the previous upward move. Rekt Capital, another pseudonymous trader, emphasized the significance of long downside wicks in ending more than 20% corrections for Bitcoin over the past year and a half.

On May 5, Bitcoin closed at $64,109, and a 20% increase from that level would push it above its current all-time high, reaching $76,822. Currently, Bitcoin is trading at $62,830. Mags, a crypto trader, predicts that Bitcoin may fall slightly short of the estimated level but believes it could reach a range high of $72,000 if the current levels hold.

While the bullish candle hammer pattern is seen as a positive signal, traders typically await confirmation of a change in direction from the following candle. Therefore, they will closely monitor Bitcoin’s chart as the week of May 12 comes to a close.

One thought on “Bitcoin’s Potential to Surge Supported by Bullish Candle Hammer

  1. I’ve been burned too many times to trust these “experts” anymore. I’ll believe Bitcoin is turning around when I see it with my own eyes.

Leave a Reply