Bitcoin price this week exploded through resistance at $10,000 and blasted to a high of $11,400. The cryptocurrency is now consolidating below that level, gearing up for what one crypto analyst expects to be a follow up nearly one and a half times the size of this week’s rally.
Will the cryptocurrency close a “Three White Soldiers” formation, and if it does, what can be expected for price action in the days and weeks ahead?
Bitcoin Price Weekly Structure Looks Set For Bullish Uptrend Pattern, Claims Crypto Analyst
In response to the United States’ second round of stimulus money flowing into free markets, gold soared to a new record, while silver, Bitcoin, and cryptocurrencies went on a tear.
These hard assets are expected to continue to perform in response to hastening inflation. Cryptocurrencies like Bitcoin are also breaking out from a three-year bear market, providing them with much pent up momentum.
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Case in point, BTCUSD rallied over 13% this week alone, after spending nearly three full months consolidating below $10,000. And while much of the push from precious metals and crypto was due to the dollar collapsing and not all due to these assets pumping, most analysts are expecting the uptrend to continue in crypto.
According to one crypto analyst’s “bold take,” they expect Bitcoin to close out this week strong, yet next week much stronger. They see the leading cryptocurrency by market cap performing 1.5 times better than this week, confirming a three white soldiers Japanese candlestick pattern.
But what exactly will the pattern imply if confirmed?
BTCUSD Weekly Three White Soldiers | Source: TradingView
Will Three White Soldiers Form On BTCUSD Weekly Price Chart? What Does This Mean?
Three white soldiers is a bullish Japanese candlestick pattern, where three green candles close in a row, each higher than the next, with similar-sized or increasingly larger candlestick bodies.
Even if the pattern confirms with three candles in a row, due to heavily overbought conditions the fourth candle in the formation is often a pullback. After that, however, three white soldiers would confirm a new uptrend.
The last time such a pattern confirmed, was during the 2019 parabolic rally that took Bitcoin price to $14,000.
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After finally breaking out from resistance near Bitcoin’s bottom, the asset paused, consolidated, and then took off like a rocket ship. The second weekly candle was particularly large after the breakout, matching the rally we’ve seen this past week.
What came next, was another 100% climb before the asset topped out. Another 100% rally from current prices, would take Bitcoin price to a new all-time high.
Three white soldiers are the opposite signal of three black crows. The bearish signal appeared on monthly timeframes following the asset topping in 2019, promoting a new downtrend to follow.
With three white soldiers potentially forming on BTCUSD weekly price charts, will it kick off another explosive uptrend?