Bitcoin Price Weekly Closes As Shooting Star Doji, Epic Plunge May Follow

Tony "The Bull" Severino

5 years ago

2 mins read

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Bitcoin price closed last night’s weekly candle as a shooting star doji, which could signal that a powerful reversal and epic plunge is coming when formed at the top of an uptrend.

Is there more downside in Bitcoin’s near term future? Or was the recent drop to under $4,000 the final bottom before the next bull market?

Bitcoin Price Weekly Candle Closes as Shooting Star Doji

Bitcoin price is trading below $7,000 once again, closing out last night’s weekly candle at roughly $6,900. As the dust settled on the week’s price action, the candle closed out as a shooting star doji – a Japanese candlestick formation that typically indicates a reversal.

A shooting star doji is a bearish candlestick, consisting of an extremely long upper wick, and a candle body that is very small, and in close proximity to the candle open.

This type of candle shows an extremely strong push from buyers that is eventually rejected from sellers, resulting in a long upper wick. Because the force from bears is so strong and buyers have are already exhausted from the initial push, the following price action is typically bearish, and often a dangerous drop is next.

A shooting star doji looks exactly the same as an inverted hammer candle – another reversal candlestick. The only difference is that a shooting star doji occurs at the top of an uptrend, while an inverted hammer happens at the bottom of a downtrend.

Last Shooting Star Doji Preceeded Epic Plunge to BTC Bottom

Shooting stars often precede an epic plunge, due to bulls running out of buying ammo in the initial surge in price, who are later taken by surprise by the strength of bearish traders.

Bitcoin price bouncing from lows around $3,800 and rocketing back upward to above $7,000 took a lot of buying momentum. But once the first-ever cryptocurrency met former support turned resistance, the asset was rejected resulting in a long wick and the weekly closing out as a shooting star doji.

The last time a shooting star doji was spotted on Bitcoin price charts across weekly timeframes, was on October 18th during peak Tether controversy. Crypto traders fearing issues surrounding the stablecoin’s parent company, sold off Tether for Bitcoin in a panic, causing the price to pump rapidly.

What was left behind was an enormous wick, and battered and beaten bulls who bought up what they had thought at the time was a massive breakout from downtrend resistance.

With bulls running out of steam and bears gaining the upper hand, less than one month later, Bitcoin price broke through support at $6,000 and fell to its current bear market bottom at $3,200.

Now that another shooting star doji has formed on Bitcoin price charts, could another similar epic plunge be in the cards?

Featured image from Pixabay

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.