Monthly and Weekly Candle Analysis: Bullish Outlook Emerging
As we enter the first week of the June monthly candle, Bitcoin (BTCUSD) is already showing signs of strength. The monthly chart is forming a hammer-like candle — a bullish signal when seen at the bottom or middle of a trend. While it’s too early to confirm the full candle, early buyers have stepped in, hinting at possible continuation of the bullish momentum in the days ahead.
Looking at the weekly chart, BTCUSD has formed a doji candle, indicating market indecision. However, this doji comes after a red pause candle and seven consecutive bullish green candles, which adds major weight to the bullish bias. When this setup occurs in an uptrend, the doji is often a sign that the market is simply resting before pushing higher.
Understanding Recent Price Action
Here’s the candle context you need:
- 7 Green Weekly Candles: Strong bullish trend
- 1 Red Candle (Last Week): A healthy pause candle, often seen before continuation
- Current Week’s Candle: Doji — signals balance between buyers and sellers
When a doji forms after such a sequence, it confirms potential for further upside, only if the price breaks above the weekly high, which is 106,859.
Trade Plan for This Week
Traders can plan both bullish and bearish trades based on how BTCUSD behaves around the key resistance level at 106,859.
Bullish Scenario (Primary Setup)
- Buy Entry: Only above 106,859
- Target: 111,981
- Stop-Loss: Below the entry candle low or nearest swing low
- Strategy: Wait for clean candle breakout and retest confirmation. Use your bullish/bearish setup method as described in the “Perfect Trading Entry” article on this website.
This setup is especially effective after a doji, where a breakout often leads to explosive momentum.
Bearish Scenario (If Breakout Fails)
In case BTCUSD fails to break the weekly high, that level will act as a strong resistance. If the price starts rejecting this high and forms a bearish pattern like:
- An M-shaped pattern
- Rejection near the 5 EMA
- Bearish engulfing candle
Then you can look to sell, using the following setup:
- Sell Entry: After price rejects 106,859 and forms bearish pattern
- Target: Weekly candle low
- Stop-Loss: Above the rejection high
This gives traders a safe countertrend opportunity while respecting the structure.
Use Your Setup Method (Works with Doji Too)
Make sure to follow the same 5-step entry system you’ve already learned. That system is reliable with doji candles too. Here’s a brief recap:
- Identify the breakout level (here: 106,859)
- Wait for candle to close above (no wicks only)
- Enter on confirmation
- Place SL at logical spot (candle low/swing low)
- Set realistic TP based on recent highs or fib zones
Trading based on candle structure keeps things clear, especially in doji-based trades.
Bitcoin Market in the News
Stay updated with these latest Bitcoin developments reinforcing the current structure:
- “Bitcoin forms bullish Dragonfly Doji near $105,900, RSI supports continuation”
- “Binance analysis: Weekly chart shows bullish doji, resistance at ~112K, support ~106K”
- “Bitcoin’s Doji Star: Is a Storm Brewing?”
- “Weekly Dragonfly Doji confirms support near $104.5K”
- “BTC momentum tightening — key breakout levels ahead”
These headlines reflect current sentiment and align with our technical bias.
Key Summary Table
| Signal | Observation | Action |
|---|---|---|
| Monthly Hammer-Like Candle | Bullish sign in early formation | Watch closely |
| Weekly Doji | Signals balance after pause candle | Prepare for breakout |
| Breakout Above 106,859 | Confirms bullish continuation | Go Long |
| Failure to Break High | Weekly high becomes resistance | Go Short if pattern |
| Sell Target (If Rejected) | Weekly candle low | Conservative exit |
Final Thoughts
- Bitcoin is forming a classic pause-doji-continuation setup on the weekly chart.
- Confirmation comes only on a breakout above 106,859 — avoid premature entries.
- The same bullish/bearish setup strategy you’ve learned applies perfectly here.
- If price stalls or forms a bearish pattern, look for reversal trades using M pattern or 5 EMA.
- Weekly candle high is a crucial level — use it for both breakout and reversal scenarios.
Trade Setup Resources
- Learn More About Chart Patterns
- Open a Crypto/Forex Account with Exness