Bitcoin's First 2020 Very Strong Signal, Bullish Engulfing (Q1$)

The Bitcoin Bulls are now taking the lead... A very nasty drop yesterday, today turns into a fake breakdown that can lead to a very strong bullish signal called "Bullish Engulfing, this signal is confirmed after the daily candle closes above $7175.

Here is the daily chart for Bitcoin with the signal highlighted:

• We also have a bullish flag and EMA10 being challenged.
  

This action looks really good and can signal that the bulls will take the lead, but, just as a nasty drop turned into a bullish signal, this candlestick can change by the end of the day.

• If prices for BTCUSD close above EMA10, we will hit $7400-$7500 easily, followed by $7970.
  
• But if instead BTCUSD closes below $7175, prices can continue to range within the flag (black trendlines).
  

My view
Fake breakouts and breakdowns are more common with low liquidity (low trading volume), our view for Bitcoin after the 18-Dec. move is up. We are likely to see Bitcoin move higher.

Where do you think Bitcoin is headed in Q1 2020?

Share your thoughts and charts with us in the comments section below.

Thanks a lot for reading.

This is Alan Masters.

Namaste.