Bitcoin at its New 52 Week High, where else could it reach this year? | Let's Analyze.

Namaste everyone.

Bitcoin is consolidating above 37000 in the absence of big bulls. Ignoring Tuesday's entire decline, Bitcoin once again reached near its 52-week high with strong and sustained buying on #Wednesday. But the presence of a hanging man in the weekly chart and a shooting star in the daily chart indicates to trade cautiously here.

Image by Freepik | Edited on Canva

Although neither the shooting star nor the hanging man candles have yet been confirmed, But their structure, which provides insight into price action, remains the same. To confirm this, it will be necessary to keep an eye on the price action.

Image by TradingView | #Bitcoin chart weekly time frame.

For beginners to understand, the candles shown in the ellipse area above are known as hanging man or dragonfly doji. What matters more than its name is its significance. Hanging Man candlestick signals a reversal of an uptrend. However, this obviously does not prove to be true 100% of the time because if that happens then the market will become predictable for anyone, which can never happen. But after confirming this, it becomes necessary to trade more carefully. Especially if you are trading rather than gambling.

Image by TradingView | Bitcoing chart 1-Day time frame.

Again for beginners to understand, the candle shown in the ellipse area above is known as the shooting star candlestick pattern. And here too, what matters more than the name is the importance of a candlestick on the chart. Shooting star candlestick patterns also indicate a potential price reversal. And this is also not 100% accurate. But its presence in an uptrend suggests to trade with caution.

Now, to confirm both these candles, it will be necessary for the prices to move in the direction suggested by them and break their lows. Since I only analyze the daily and 4-hour time frames, I will just wait for the daily candle to break the low of the shooting star for selling opportunities and/or for buying I would wait for the price to break above the high of the shooting star candle.

To confirm a breakout, I need a 4-hour candle outside the shooting star range and a follow-up candle. That's it! Stop Loss will be very strict as it is really an important rule and key to becoming a successful trader.

Look, understanding price action may seem a bit difficult but the less complicated the trading strategy, the better you will be able to trade.

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English is not my first language. So sometimes I use 'Google Translate'. Please don't think that anything I have written in this blog has been copied from somewhere or is AI-generated.

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Thank you for reading this blog.

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