Bears Salivate As Bitcoin Monthly Close Leads To Indecision

Bitcoin price is back above $56,000 once again, after a tug-of-war between bulls and bears has led to a bit of a stalemate just as the April monthly comes to a close.
The monthly candle at current levels will close as a doji, signaling indecision, and a potential reversal ahead. Here’s a closer look at the potential reversal pattern that has crypto bears salivating for cheaper coins in the days ahead.
Bitcoin Bears Make A Stand Against Bulls, Rally Reaches Stopping Point
It is hard to be bearish on Bitcoin at all, let alone right now. The cryptocurrency has risen from pennies to more than $60,000 per coin. The scarce BTC supply suggests these are still early days and there’s a lot more ROI to go, potentially reaching prices of hundreds of thousands each in the future.
All of 2021 thus far has been like a rocket ship for Bitcoin and its altcoin brethren. Ethereum and Dogecoin have massively outperformed the top cryptocurrency and several others have done even better.
Related Reading | Bitcoin Price Forecast: Cloudy With A Chance Of Downside
Bitcoin profits being taken and flowing into altcoins is just one of many reasons for the leading cryptocurrency by market cap to take a pause. Incredibly overheated technical indicators, and a sudden fear of coming regulation combined with a huge capital gains tax hike on the horizon are also to blame.
The indecision has led the pivotal April monthly candle close to form a doji, if and when it closes tonight at 8PM ET.

The monthly should close as a doji, but there’s risk of a reversal | Source: BTCUSD on TradingView.com
Potential Evening Star Reversal Pattern Could Mean Lights Out For Crypto Bulls
A doji is either a sign of indecision before a trend continues or is a signal a reversal is near. But it all depends on what comes next after the doji is formed. If another massive move up follows in May, then the bull trend is back on full force.
However, if bears get the best of price action over the next month and close with another red candle, there’s risk of an evening star pattern.
Related Reading | Potential Island Reversal Leaves Bitcoin Bulls Stranded
An evening star reversal is a Japanese candlestick pattern that that forms when there’s a sharp rise capped off by a doji, then followed by an similarly strong showing by bears to the downside.
The red candle in May must engulf at least 50% of March’s historic candle close to be confirmed. If May closes below $50,000, there’s serious risk of more downside in the top cryptocurrency ahead.
The reversal pattern also has appeared during the same month as a rare “Pi cycle top indicator” has triggered its signal for only the fourth time in Bitcoin’s history.
Featured image from Pixabay, Charts from TradingView.com

Ora Goodwin
Ora Goodwin
I am a well-known and respected author in the cryptocurrency field. I have been writing about Bitcoin and other digital currencies for over 5 years, and my work has appeared in some of the most respected publications in the space. I am also a regular speaker at industry events, and my insights into the crypto market are highly sought after by both media and investors. In addition to my writing and speaking engagements, I am also an active advisor to several blockchain startups, and I sit on the board of directors for the Blockchain Education Network.

Similar Articles

Most Popular

Invest Early in Mallconomy: The Future of Retail is Here

E-commerce—more specifically, online shopping—is the undisputed future of retail. Meanwhile, in the Web3 arena, one project that just announced the start of its initial...

Invest Early in Mallconomy: The Future of Retail is Here

E-commerce—more specifically, online shopping—is the undisputed future of retail. Meanwhile, in the Web3 arena, one project that just announced the start of its initial...

Lyber IDO Concludes, Paving the Way for Digital Asset Innovation in Europe

Lyber is celebrating the successful completion of its IDO, a significant milestone underscored by robust community support and a clear demand for innovative blockchain...

Egochain IDO Concludes, Paving The Way to Revolutionize the EV Industry With Blockchain Technology

Supported by strong community enthusiasm and underlining the demand for blockchain solutions in the electric vehicle market, Egochain has successfully completed its Initial DEX...

OkayCoin Releases Expert Guide to Earning Passive Income Through Crypto Staking rewards

Los Angeles, USA — OkayCoin, a pioneer in crypto staking solutions, proudly announces the release of its comprehensive guide to cryptocurrency staking, aimed at...

Trailblaze Marks its IDO Milestone with Platform Launch, Setting New Standards in the Launchpad Industry

Trailblaze's IDO, heralded by significant community support, showcases a vigorous drive for innovation within the launchpad sector. This pivotal achievement emphasizes a progressive shift...

Maximizing Ethereum Staking Rewards: Tips and Tricks

Are you looking to maximize the potential of your Ethereum holdings? Stake Ethereum using OkayCoin and take advantage of the benefits of decentralized finance...

Okratech Token Launches Ambitious Expansion Initiatives with Web3 App Store and New Strategic Partnerships

June 5, 2024 – Okratech Token (ORT), an established entity in the blockchain industry, is making significant strides with the launch of new products...