According to U.Today, Bitcoin, the leading cryptocurrency by market capitalization, has formed a "gravestone Doji" candle on its weekly chart, a bearish indicator that often signals the end of a bullish trend. This formation is characterized by a long upper shadow, indicating that bears are maintaining control after bulls failed to push the price higher. The small tail suggests that Bitcoin's closing price is likely to be lower than its opening price for the week.
Earlier this week, Bitcoin surged above the $73,000 mark, nearing a new record high. However, it faced a sharp rejection, retracing back to $67,000. Despite the impressive performance of BlackRock's IBIT, Bitcoin did not reach the $74,000 level. Some analysts attribute this to the relatively low influx of new money into Bitcoin ETFs compared to gold ETFs.
During the recent sell-off, Bitcoin began dipping below the lower band on the Bollinger Bands indicator on the four-hour timeframe, which could be another negative sign for the bulls. However, on a positive note, Bitcoin formed a bullish divergence on the one-hour timeframe, suggesting that the bearish momentum might be weakening in the short term. Despite the bearish signals, trader sentiment remains relatively positive, with the "Fear and Greed" indicator still showing a score of 74 out of 100.
