Digital Currency Revolution Series: Giving The Benefit of Doubt To Bitcoin’s Hammer And Gap-Up Patterns On Eve of X’mas

The year-2018 has been bearish rout for bitcoin price, during that phase, BTC price showed steep slumps and year-2019 has been mixed bag of sentiments, we could see no traces of slowing in its dominance as 2019. 

At the beginning of the year, BTCUSD price surged from the lows of $3,122 to the recent highs of $13,880 levels (i.e. mammoth returns of 344 in percentage terms that too within a span of 6 months or so, refer 1stchart).

Although Year-2019 has been instrumental for bitcoin exchanges, crypto-traders and investors, it has been little turbulent. However, such robust uptrend has generated various price gaps in the CME Bitcoin futures contracts (refer 1st chart). Hammer pattern takes off rallies above 7 & 21-SMAs, the upswings form gap-up that reclaimed $7.5k.

Technically, Shooting star plummets prices below EMAs, both leading oscillators in tandem with price slumps in intermediate trend of BTCUSD, the underlying price has retraced 61.8% Fibonacci levels that has wiped off most of the gains in the year-2019. Whereas the slumps have halted at that juncture and showing some strong supports. As a result, hammer pattern occurred at $7,509 levels to counter.

We could see the stiff resistance levels at $7,764 levels, if bulls manage to breakout these levels decisively, then we could foresee more upside traction easily upto $8.5k levels. Thus, we add fresh longs at spot level for targets upto $8.5k levels with strict stop loss of $7,085 levels.