Bitcoin’s Bullish Engulfing Candle (1 Point to the Bulls)
This chart shows the weekly price movements for Bitcoin since mid-August. As you can see, “Candle 2” (which ended last week Sunday) was the first green candle of the bunch. But more interestingly, it was a bullish engulfing candle.
A bullish engulfing candle works like this. At some point during the trading period (in this case, last week) the price moved below the low of the week before (red dotted line, $25,400). But then buyers stepped in and pushed the price higher. And by the end of last week, the price finished above the high of Candle 1 (green dotted line, $26,500).
To use a boxing analogy: The Bears might have landed the first punch, but the Bulls came back with the knockout blow.
As far as technical analysis theory goes, bitcoin buyers could have the upper hand for a while. But remember, the Bears are always waiting around the corner, looking for an opportunity to strike back…