RATE Group | Bitcoin narrowly avoided a huge plunge with this rare technical setup
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Bitcoin narrowly avoided a huge plunge with this rare technical setup

29 Jan Bitcoin narrowly avoided a huge plunge with this rare technical setup

Posted at 06:52h in Cryptocurrency News by

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Several technical analysts predicted the Bitcoin price to fall after it rejected $9,200 once again. In lower time frames, a classic “hammer candlestick” was formed as BTC spiked from $8,800 to $9,070 within hours.

The rare hammer close on the 4-hour chart of bitcoin, which does not occur often as it requires rejection of both the local top and the local bottom in a short time frame, may propel it to new local highs.

bitcoin hammer
A hammer candlestick formed on bitcoin 4H chart (source: BitMEX / TradingView)

How bad it could have been for Bitcoin without the “hammer” close

As emphasized by respected cryptocurrency traders like TraderXO, the Bitcoin price was en route to testing the midpoint of a range it has been in since November 2019.

Within the range, with a high point at $9,000, midpoint at $8,250, and low point at $7,300, the price of Bitcoin was expected to test the mid range level at $8,250 in the near term.

bitcoin range
Source: TraderXO Twitter

The hammer close prevented Bitcoin from testing the mid…

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