Aksel Kibar, A Chartered Market Technician (CMT), recently identified a potential Gravestone Doji in the Bitcoin weekly chart, signaling a possible bearish reversal.
A disclosure from Kibar confirmed that the shape of this pattern features a long upper shadow and a close near the opening price, suggesting that bulls lost control after trying to push prices higher.
According to the market veteran, while this pattern alone isn’t sufficient to confirm a reversal, a subsequent weak candle on the 1-week timeframe would serve as validation, pointing to a likely bearish trend shift.
Bitcoin Potential Gravestone Doji
Data from his chart confirms that the Gravestone Doji appears at a major resistance level around $73,700, where Bitcoin has been testing new highs. For context, Bitcoin began a bullish recovery last week, soaring to retest the ATH above $73K by Tuesday.
$BTCUSD weekly candle can look similar to GOLD. pic.twitter.com/9z1szhUzHd
— Aksel Kibar, CMT (@TechCharts) November 3, 2024
However, it faced a massive correction following this retest, eventually closing the week at $68,738, a price slightly higher than the $67,937 value it began the week with. This led to the potential formation of the Gravestone doji candlestick.
The Gravestone Doji’s presence here implies that bullish momentum may be weakening, with bearish forces likely gaining strength. Bitcoin’s price movements this new week is very important. If it forms a weak candle this week, it could confirm a reversal, marking the start of a pullback.
Notably, market veteran Peter Brandt had in a previous analysis argued that Bitcoin was still in a bearish setup despite the latest rebound. He identified that the firstborn crypto remained in an inverted broadening triangle structure, and would need to close a weekly candle above $76K to confirm a breakout from this pattern.
Bitcoin’s Broader Market Outlook
Meanwhile, Kibar’s chart further shows Bitcoin’s broader outlook. The chart indicates that the first phase of the bull run, which saw BTC claim a new ATH above $73K in March 2024, came after a a strong breakout from a six-month consolidation phase within a rectangle pattern.
After breaking out of this rectangle, Bitcoin maintained an upward channel, establishing higher highs and higher lows, which have guided the market’s recent bullish movement. The Gravestone Doji at $73,700 now casts doubt on Bitcoin’s continued upward momentum.
If Bitcoin fails to maintain this level in the and a bearish candle follows, it could confirm a broader pullback. In this scenario, Bitcoin may revisit major support levels, with the $50,000 mark likely acting as an initial target.
This level previously served as resistance during the initial bull run and may provide a strong support base if the reversal gains momentum. Bitcoin currently changes hands at $68,557, now down 0.26% in the new week. The upcoming US presidential election could be instrumental in determining the next direction.
