BTC - Monthly Trying to be Saved
2024-12-31
Category: None

After the recent drawdown flushing the liquidity of the last low we have seen a massive push by the bulls back to the upside. This gives us a few key indications. The first indication is that there is still indecision in the market. Whether the market continues up or has a further pullback. These indecision candles are created when the open and close are at a similar price point and also during the period of the candle there is a wick to the upside and downside. 

Since this is the monthly chart, this is a very important close for Bitcoin's future. Right now the monthly open for December sits at $96,400. Going into the future this will remain and important liquidity level. Looking back at the past we can see other monthly indecision candles. 

In April 2021, the evening star candle formation signaled the first major reversal since the 2020 bull market began. 

In February 2023, Bitcoin printed a monthly doji. This one is interesting as it did signal a reversal at first. From the open, price dropped 15%, but then something spectacular happened. The bulls stepped in and from the low pushed price up 50% in a single month to save the uptrend! 

January 2024 price also formed a monthly doji, but instead of price reversing price immediately started climbing upon the open which lead us to a 43% increase the following  month. 

With this candle being formed, we can guarantee a very volatile January will happen. The main question now is will this indecision candle cause a reversal at first, or will we follow a pattern similar to last January where price negated the reversal and never looked back. 