This “shooting star” pattern, which often shows up when prices hit resistance levels, suggests that buying momentum might be slowing down, with selling pressure increasing.
So, in technical analysis, a shooting star shows up when an asset’s price opens, climbs sharply, and then retraces to close near its opening level, leaving a big wick at the top. This formation often shows up when buyers can’t push the price up, facing resistance that can signal a flush downwards.
The latest shooting star pattern formed last week as Bitcoin tried to beat its March high but fell short by less than one percent, making people wonder if the current rally is as strong as it seems.
Concluding, the rise in bearish signals around previous high points suggests that Bitcoin may need to consolidate further before any sustainable rally can take place.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
