Bitcoin held the level of $ 27,000 on Tuesday after setting a record high of $ 28,387 earlier in the week. The leading cryptocurrency opened at $ 27,039 and fell to an intraday low of $ 25,833 in early trading volatility.
However, traders took the downside correction as a signal to build up at cheaper rates. There has been an improvement. The BTC / USD pair reclaimed the $ 27,000 support. The pair reached $ 27,336 before closing the day with a 1.21 percent increase.
In doing so, Bitcoin created a small-bodied bull candle that resembles the Hanging Man candlestick pattern on its daily chart.
What is the hanging man?
The term reflects the shape of the candle formed on Tuesday, with a small distance between the opening and closing rate and a longer wick to the downside. The model also features a breakable top shade that makes it a perfect Hanging Man display, as many technical graphic artists believe.
An independent analyst, known as Cheds, highlighted the Hanging Man model on Bitcoin’s daily chart in a tweet posted at midnight Wednesday.
The graphic artist also cited textbook descriptions that claim the Hanging Man is an upward-based sequel, with the possibility of sending the prices of an asset 59 percent higher.
While sharing the screenshot of the statement, Mr. Cheds also combined his technical analysis to support the bullish setup, noting a strong buying sentiment for Bitcoin near the EMA8 area support wave.
Enough bull fuel for Bitcoin
As long as the Bitcoin price does not decisively deteriorate to technically neutralize overbought signals, it could possibly continue the bull run that dominates in the $ 29,000 – $ 30,000 range.
But many prominent analysts outside of Cheds also gave an optimistic outlook on Bitcoin. Dan Tapeiro, co-founder of DTAP Capital, an investment firm in Connecticut, said the cryptocurrency could rise to $ 53,000 while watching a total market valuation of $ 1 trillion.
The market cap of bitcoin is currently approaching $ 500 billion. This is managed by the dramatic increase in institutional adoption as the safe haven, anti-inflationary asset. Cryptocurrency’s newest main investors include MicroStrategy, Square, Ruffer Investment, MassMutual, Paul Tudor Jones, Stan Druckenmiller and others.