- Bitcoin has printed a large bullish engulfing candle within the downtrend.
- Bitcoin is displaying some early buy signals.
- Invalidation of the bullish trade setup is $37,482.
Bitcoin price could be showing early signs of a countertrend rally underway. Risky traders may want to get involved.
Bitcoin price looks ready for battle
Bitcoin price is always an entertaining asset to watch. It was mentioned earlier this week that the Bitcoin price would fall to the high $39,000, but asking for anything more would be a greed filled request. Now that the bears have validated the last thesis, the bulls are aiming to reclaim some of the lost grounds.
BTC price has printed a large bullish engulfing candle, the largest candle in the entire downtrend. The candlestick is accompanied by an intense volume, a hopeful indication of bullish strength. The relative strength index does have some divergence though not quite in the buyers' zone. It could be early evidence of smart money involvement.
BTC/USDT 4-Hour Chart
Invalidation of the uptrend scenario is a break below $37,480, providing a 1.8 to 1 setup for the current BTC price. If the bears manage to wick $37,480, consider all hell to break loose as they will likely have enough strength to send prices back to $35,000 and even $31,000 resulting in a 20% decrease in the current BTC price.