Looking at larger timeframes when analyzing crypto charts is a good practice. It gives you perspective on the overall theme of price action.
For bitcoin, that theme has been bullish in recent months. However, one is left pondering if that is about to change.
Reversal Candle, yikes...
Looking at the monthly timeframe we can see December is lining up to put in a nasty reversal candle. That huge up wick with the lower close after several green candles is what we call a bearish u-turn in the charting world.
Granted, it doesn't mean price is definitely going lower. It just means that if one is trading they would normally be looking at a bearish trade playing out in their favor.
There is still five days left in the month, so maybe price will rally to change the narrative or maybe January will ignore this bearish candle all together. Either way, not in love the price action on the monthly chart.
Posted Using InLeo Alpha