Bitcoin retraced back up to the 38% Fibonacci retracement level of its all-time high and February low. This Fibonacci level intersected with the downtrend line drawn off the December 2017 and January 2018 highs, presenting reinforced resistance.
At this point, just as it did in January, a bearish eveningstar reversal pattern formed on the daily chart marking a top in the short term uptrend.
An eveningstar is a three-period candle pattern that consists of a large up-day candle, followed by a narrow opening and closing range doji candle, and completed by a large down-day candle. It represents a transition from bullishness to bearishness.
Monday’s bullish large body candle held above the 23.6% retracement level and is retesting the downtrend line. In order for the eveningstar pattern to be negated, the 50% retracement level needs to be recaptured and price advance from there.