Bitcoin’s Evening Star Formation Has BTC Bulls Fearful

Dalmas Ngetich

1 year ago

2 mins read

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BTC down 2.8 percent
Evening Star pattern prints

Traders are wary, doubting the strength of the underlying momentum. At the time of press, Bitcoin is cooling off, dropping 2.8 percent in 24 hours as prices range below May high.

Bitcoin Price Analysis

Fundamentals

True, May was an exciting month for Bitcoin and indeed crypto traders. After a lackluster performance in Q1 2019, the recovery in April and the assertion of May did bring good tidings to hodlers.

As a result, Bitcoin now has deeper liquidity with prices more than doubling from December’s lows. That’s not forgetting increasing network’s difficulty that often swings dependent on spot rates and investor expectations.

However, it appears as if traders and the general investor community are skeptical of buy momentum. The failure of bulls to reassert themselves over the weekend seems to be the reason for caution. The result of this floundering is a consolidation that is withdrawing liquidity from the market.

Add that to the formation of the “Evening Star” candlestick pattern and traders are increasingly dismissive of bulls. Taking to Twitter, a trader, ‘Bleeding Crypto’ said:

“I don’t remember when I saw that much heat under the Price Action recently… Bloody Monday might be just around the corner. It’s better to be safe than sorry.”

Candlestick Arrangement

At the time of press, BTC is under pressure, down 2.8 percent from yesterday’s close. All the same, the uptrend is solid and bulls, flimsy but steadfast. Even though we shall maintain an upbeat stance, expecting BTC to inch higher, it is the formation of the Evening Star in the weekly chart that cast doubt on the strength of the underlying momentum.

Note that not only do we have a doji but the deviation from the upper Bollinger Band (BB) hint of slacking buyers. As a result, the best approach is to maintain a neutral stance. If buyers recover with blast above $9,100 or May high, conservative traders can buy the dips with a modest target at $10,000.

Conversely, any drop below May 30th low could trigger a steep selloff that may drive BTC to $7,500, $6,600 and later $5,600 in a retest phase.

Technical Indicators

Anchoring this trade plan is May 30^th bar. It is wide-ranging with above-average trading volumes of 31k against 19k of May 26^th. BTC is ranging inside this bar.

As mentioned above, any move driving prices above $9,100 or below $7,500 must be with high trading volumes exceeding 31k or 47k of May 13^th. That will either confirm buyers or nullify this trade plan.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.