Gravestone Doji Signals Potential Bitcoin Plunge - Cointribune

Home » News » Finance News A feared technical indicator has burst onto the weekly charts: the “Gravestone Doji”. This figure, often associated with a trend reversal, could signal a turbulent phase for

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A feared technical indicator has burst onto the weekly charts: the “Gravestone Doji”. This figure, often associated with a trend reversal, could signal a turbulent phase for the market. The interest in this unanchored cross-shaped formation is even more pronounced as investors had hoped to see Bitcoin cross the symbolic threshold of $74,000. Instead, the queen of crypto has retreated below $67,000, shaking the certainties of the most optimistic.

The weekly chart of Bitcoin revealed an alarming technical setup this week, that of the “Gravestone Doji”. This setup confirms a failure of buyers to keep the price in the high zone. It is a signal that investors often interpret as heralding the end of a bullish trend. Alex Dovbnya of U.Today explains that “this formation indicates a weakening of buyers in the face of a gradual takeover by sellers, the ‘bears’, after a failed attempt by the bulls to push Bitcoin beyond recent levels”.

Indeed, during the same week, Bitcoin approached the symbolic threshold of $74,000, a level that could have marked a new inflection point. However, this rise was quickly followed by a drop to $67,000, a sharp pullback that reflects increasing volatility. This inability to sustain high prices has heightened fears surrounding the bearish configuration represented by the Gravestone Doji, especially since this indicator is generally considered a harbinger of an imminent correction in the market.

In parallel, other technical indices are reinforcing investors’ concerns regarding the strength of the current bullish trend. Despite a recent price drop, the “Fear and Greed” indicator still displays a high score of 74, indicating lasting optimism among investors. However, some are skeptical of this euphoria. Recent fluctuations in Bitcoin show that it has not benefited from the expected support from index funds, like that of BlackRock, which many believed would bring significant inflows to stabilize the long-term price of crypto.

Moreover, technical signals such as Bollinger Bands on hourly scales reinforce caution. A drop below the lower band over a four-hour period indicates intensifying selling pressure. Nevertheless, a glimmer of hope remains, with a bullish divergence signal on the hourly chart, suggesting a potential easing of downward momentum in the short term. This contrast in signals reflects a indecision that could keep the market in a phase of increased volatility, with potentially sudden movements in either direction.

As the market digests this Gravestone Doji formation, the prospects for Bitcoin remain unclear. While some anticipate a technical correction that allows for a consolidation before a possible recovery, others fear a more pronounced downward reversal. The lack of robust new institutional inflows reinforces this uncertainty. Thus, investors must remain alert to upcoming technical indicators and consider long-term prospects for Bitcoin, in a context where every fluctuation could potentially impact market sentiment.

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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019.Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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