Technical graphics, in particular the form of candlesticks, often reflect psychology behind the market, highlighting the feeling and behavior of traders. Since Friday, at least two Bitcoin candles (BTC) have indicated bullish currents in several months, which gives a glimmer of hope for cryptographic bulls.
The graph below shows that the drop in the prices of the BTC has stalled in terms of simple 200-day mobile support since last Wednesday. The daily candles for Tuesday and Friday are particularly interesting, because the two have small bodies with long lower wicks, alluding to the failures of the bears below the 200 -day SMA.
In other words, the two days, the sellers initially pushed the prices below the average key, but failed to walk there, probably because of the buyers working to protect the level of support.
Such candles appearing after a notable downward trend, which is the case in BTC, indicates a potential optimistic reversal. Traders generally see it as proof of weakening the sales pressure which could result in a renewed upward phase.
Thus, the BTC could bounce back at the top of Sunday about $ 95,000, above which traders can again settle on the $ 100,000 mark. On the other hand, a drop break from the 200 -day SMA could be deeper.
