BTC Morning Star Bullish Reversal

Today Bitcoin finished building a morning star candlestick pattern on the daily chart.

The morning star candlestick pattern often signals a change in trend from bearish to bullish. According to Thomas Bulkowski’s research, the morning star pattern represents a bullish reversal 78% of the time.

“The morning star candles is one of my favorites. It acts as a bullish reversal frequently enough that I consider it reliable.”
– Bulkowski's Morning Star

I like it a lot too, especially when it happens on volume just as heavy as the previous day, and even more so when it happens around expected support levels, in this case made up of the confluence of horizontal price support, the 50% Fibonacci retrace of the last daily measured move from swing lows to swing highs, and the 100 & 200 day EMAs. When it happens at oversold extremes, like the case today, then we’ve got even more reason to believe in a possible reversal.

I think it’s safe to say that it’s very likely BTC's made a bullish reversal.

It’s also clearly an inverse head and shoulder pattern on the hourly chart, with a complex head, which itself is a double bottom, all with class A bullish divergences to boot!

Now I'll be looking for follow through tomorrow. 😉

---

Please leave your comments, input, questions, etc., below!
Your support is much appreciated. If you like this post, please Upvote.

@cryptographic