Weekly Candlestick Analysis for Bitcoin and the Latest Price Trends

Posted by ONUS LABS
6
May 28, 2025
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1. What is a weekly candlestick and why is it important?

A weekly candlestick represents Bitcoin’s price movement from Monday to Sunday on a candlestick chart. Each weekly candle includes:

  • Open price at the start of the week

  • Close price at the end of the week

  • High and Low prices during the week

Why analyze the weekly candlestick chart?

  • Weekly candles provide a clearer long-term trend than daily or 4-hour charts.

  • Help identify potential buying/selling zones and avoid short-term noise.

  • Commonly used by long-term investors and institutions to validate trends.

2. Common weekly candlestick patterns and their meanings

PatternDescriptionMeaningSuggested Action
Long Green CandleStrong price increase during weekClear bullish signalContinue buying with trend
Long Red CandleDeep weekly price dropStrong bearish signalAvoid buying, wait for recovery
Doji (small body, long wicks)Close ≈ OpenMarket indecisionObserve the next week
HammerLong lower wick, small bodyReversal to upside possibleTest-buy if confirmed next week
Hanging ManLong lower wick after uptrendBearish reversal signalConsider taking profits

3. How to identify Bitcoin’s trend using weekly candles

To identify trends from weekly candlesticks:

  • Observe 3–5 consecutive weekly candles to spot major trends

  • Use additional indicators like RSI, MACD, or Moving Averages (SMA)

  • Check major support/resistance zones on the weekly chart

Example:

  • Week of May 13–19: Strong bullish green candle → Confirming uptrend

  • Week of May 20–26: Doji candle → Indecision, wait for confirmation

See also:

How to Buy Bitcoin Based on Weekly Candlesticks: Timing – Tips – Strategy Adjustments

1. When to trade based on weekly candles

Weekly candles close early Monday morning (Vietnam time). This is the ideal time to evaluate the trend over the past 7 days and plan your entry.

Recommendations:

  • Monday–Tuesday: Review the latest weekly candle. If it’s a strong green or bullish reversal → start entering positions

  • Wednesday–Friday: Only continue buying if the price confirms last week's trend. If weak or reversing → hold off

  • Sunday: Avoid buying due to potential volatility and low liquidity

2. Adjusting buying volume based on weekly candle behavior

  • Strong bullish weekly candle with high volume: Buy 30–40% of your planned amount

  • Small body or long upper wick: Buy less (10–20%) due to possible selling pressure

  • Near strong support (e.g., $95K–$110K) with green bounce: Increase DCA (40–50%)

  • After previous uptrend and current pullback early in the week: Opportunity to buy at a discount

3. Key notes for weekly candlestick-based buying

  • Don’t FOMO on weekends: Weekend pumps often lack confirmation, may reverse on Monday

  • Wait for candle close: Avoid major decisions based on just 1–2 daily candles

  • Use RSI or MA to confirm: If RSI > 70 despite green candle → market may be overheated

  • Add more when: Two strong weekly gains occur, or confirming patterns appear (e.g., 2 green candles + volume)

4. Suggested actions based on weekly candle behavior

Last WeekEarly This WeekSuggested Action
Strong uptrendMild pullbackBuy 20–30% more
Mild uptrendContinues uptrendBuy 30–40% on confirmation
Strong dropStrong green recoveryTest-buy 10–20%
SidewaysUnclear directionWait another week

Note: This is not financial advice. Always do your own research and act based on your personal investment strategy.

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