Bitcoin closes above $35k for first time in 18 months
The world’s premiere cryptocurrency breached resistance at $35,000 on Monday, the first day of November. As of 11:05 PM EDT, Bitcoin is trading at a significant price point, $35,515 in the spot markets (Bitstamp) and $35,950 in the Futures markets (CME) at its close earlier today.
With Bitcoin making fresh new highs, I expect to see the price rise fast just as it did on Monday October the 16th. This time, the driving force behind the rise in Bitcoin is based technical factors and industry enthusiasm. This atmosphere is eerily similar to Fall 2020 when retail investors, euphoric and flush with cash, took the price to 3x its previous record high of $20,000. Bitcoin has a good chance of forming a bullish reversal pattern known as “three white soldiers” on a weekly timeframe if it continues gaining for the rest of the week. The fact that the first candlestick in this pattern happened to break through the long-term resistance of the 61.8% retracement (from all-time highs to recent bottom) at $28,737 reinforces this pattern, as does the fact that Bitcoin is now firmly above all the major moving averages including the 200-week. While Bitcoin dominance continuing to expand, there is one other crypto worth mentioning that is having a “breakthrough” of its own.
Only possible on Solana Part 1
Breakpoint 2023 debuts breakthroughs in throughput and much more
This year the annual Solana convention which began on Monday, October 30th and set to end on Friday, November 3rd has had monumental influence on the price of Sol (Solana’s governance token). Since the start of this year’s Breakpoint held in Amsterdam, the price of Sol has risen more and more each day. With the conference only halfway concluded, what kind of growth is possible in the remaining days?
So far this week, Solana has risen 32% as of 5:30 PM EDT, moving from $32.85 at the start of the week to current pricing at $43.30 after reaching a high a few hours earlier at nearly $47. What is extremely Bullish is how a bullish continuation pattern has formed on daily weekly and even four-hour timeframes.
Three white soldiers on three different timeframes
“Three white soldiers” is seen a one of the most reliable candlestick patterns, the criteria for this pattern to be met the pattern must,
1. Appear after a downtrend.
2. Contain three candles that are long and bullish (green).
3. Open is within the body of the previous candle.
4. Have all three candles closing prices higher than that of the preceding candle.
As stated in the requirements above this pattern only appears after a downtrend, and if we do not allow for a looser interpretation of this traditional Japanese forecasting tool then only in the weekly timeframes does this pattern form. Noteworthy because Bitcoin also has the chance of forming this same bullish reversal pattern if it continues higher before the end of the week.
To view this year’s Breakpoint events so far, click this link.
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