In case you’ve been following the Bitcoin market over the previous 30 minutes, you’ve possible seen the odd bout of worth motion depicted beneath — Bitcoin spiked 1% in a couple of minutes to solely crash by 3% in three minutes, then proceed decrease and decrease as if there was no help below BTC.
As many on Twitter defined, the candles that got here from this worth motion look precisely just like the lightsaber of Darth Maul, which has blades protruding from either side.
Jokes apart, analysts say that the existence of a so-called “Darth Maul” candle is bearish for BTC. Right here’s why.
Bitcoin May Proceed Decrease, Darth Maul Candle Suggests
Commenting on the acute worth motion — which some have chalked as much as the low liquidity on the weekends and the existence of margin buying and selling — dealer Byzantine Normal expressed bearishness.
He wrote in a message printed to his Telegram channel that when the temporary surge to $9,200 passed off, it was on “excessive quantity,” implying the following failure and reversal was a bearish signal. Explaining the idea additionally, Byzantine Normal mentioned:
“When Darth mauls go up first, then down, they’re normally bearish and proceed to bleed.”
Dealer Coiner-Yadox additionally expressed bearishness amidst the Darth Maul candle. He defined that from how he noticed it, there was a transparent confluence of resistance around $9,300 — the descending trendline, February open, a pool of liquidity, a four-hour supporter, and each day breaker — suggesting that any transfer into that area can be begging for a reversal.
Featured picture from Shutterstock
Bitcoin Simply Printed a “Darth Maul” Candle at $9,000: Right here’s What It Means For BTC was final modified: March seventh, 2020 by Nick Chong