Buying the Retreat in Bitcoin on A Bullish Reversing Pattern in BTC/USD
Skerdian Meta • 1 min read
Cryptocurrencies have shown some strong bullish momentum during the first three weeks of this year, but they’re showing some signs of exhaustion now. BTC/USD climbed above $22,300 again yesterday but buyers couldn’t hold the gains above there and the price retreated lower despite positive developments in US stock markets which closed yet another bullish day yesterday.
BTC continued its unsuccessful attempts to consolidate above $23,000 yesterday but the crypto market has paused after rallying since the beginning of the month. Total crypto capitalisation is down 2.9% over the last 24 hours but remains just above $1 trillion. Among the top altcoins, Ethereum loses at around 5%, while the rest are down between 2.9% in Litecoin and 6% for Solana.
Bitcoin H4 Chart – A Doji Candlestick Has Formed
The price remains above the 50 SMA
So Bitcoin has entered a short-term correction. If the retreat continues, a break below $22,200 would suggest a deeper correction to the $20,500-21,000 zone. Although, the overall picture is looking good, especially if the price stays above $20,000.
Rich Dad Poor Dad author Robert Kiyosaki warned that the Securities and Exchange Commission (SEC) will “crush” most other crypto tokens with its regulations. He revealed the key reason why he is investing in Bitcoin, which would benefit in the longer term if other cryptos crashed. We decided to open a buy BTC signal earlier as sellers were hesitating to push the price to the 50 SMA (yellow) on the H4 chart above and a doji candlestick formed, which is a bullish reversing signal.