Bitcoin could soon ‘BLOW higher’ on bullish candle hammer: Glassnode execs

Traders will be closely watching how Bitcoin’s weekly chart closes on May 12 to look for signs of the end of the downtrend.

Bitcoin (BTC) traders are pointing to a “bullish candle hammer” that has emerged on Bitcoin’s weekly price chart — which they say could signal a possible reversal of the past month’s downtrend.

“Bitcoin still looks like it is about to BLOW higher,” market intelligence firm Glassnode founders Jan Happel and Yana Allemann wrote on their shared X account “Negentropic” in a post on May 9.

They noted that the Bitcoin price chart closed on May 5 with a bullish hammer — the name given when there is a small body above a thin long line, referred to as a “wick.”

“Bitcoin weekly bullish hammer candle…reversal is imminent,” added pseudonymous crypto trader Mister Crypto.

It could signal a reversal as traders pushed prices down significantly during the 7 days, but buyers managed to aggressively close it near the candle open, suggesting a shift in sentiment.

“This week’s pullback hence seems like a healthy correction before higher. Corrections often pull back either 50% or 61.8% of the previous impulse move,” Negentropic said.

Pseudonymous crypto trader Rekt Capital explained that long downside wicks have often been key to ending more than 20% corrections for Bitcoin “for the past year and a half,” in a May 9 X post.

Bitcoin closed the week ending May 5 at $64,109, as per CoinMarketCap data. A 20% increase from this level would take it beyond its current all-time high, reaching $76,822.

At the time of publication, Bitcoin’s price is $62,830.

However, crypto trader Mags anticipates that it may come up slightly short of that estimate, though not by much.

“If price holds the current levels, the next stop would be a range high of $72,000,” they stated to their 73,300 X followers on May 9.

Related: Bitcoin distribution ‘danger zone’ over, analysts say

Although this single candle pattern is seen as a bullish signal to traders, most wait for confirmation of the change of direction in the following candle.

So, traders will be watching how Bitcoin’s chart closes for the week of May 12.