Today’s outperformer is LSK, which jumped 17.63% after Lisk partners with Velodrome to enhance blockchain access and drive ecosystem growth.

The SPX index is down 0.22% as the market anticipates less Federal Reserve rate cuts, considering the possibility of no cuts this year. The broader cryptocurrency market is up, with Bitcoin and Ether rising by 4.18% and 3.19%, respectively in the past 24 hours.

Lisk (LSK), launched on May 2016, is a cryptocurrency platform that enables developers to build decentralized applications (dapps) using JavaScript and TypeScript. It supports custom "sidechains" within its network, offering tools like a software development kit. Lisk has announced a partnership with Velodrome to support and expand its blockchain ecosystem. Lisk will purchase and lock $VELO tokens for voting, directing VELO emissions to key pairs on Lisk. This collaboration aims to support existing protocols on Lisk, attract new developers, and enhance blockchain accessibility and adoption in emerging markets. Velodrome will back Lisk's Layer 2 initiatives, aligning with the goal of creating a scalable, interoperable Ethereum future.

Check Out the Latest Prices, Charts, and Data of 

The Runes protocol is set to debut alongside Bitcoin's 2024 halving, heralding a new phase in Bitcoin's evolution by enabling the creation of fungible tokens directly on its network. This follows the impactful Ordinals protocol, which significantly expanded Bitcoin's functionalities. The Runes protocol will spark competition among developers to issue and acquire the first tokens, with global exchanges ready to support these tokens from day one. The halving event will also feature a race to mine a highly valuable "Epic" satoshi. As Bitcoin approaches this transformative era, extensive preparations and educational initiatives are underway to equip users for the forthcoming changes, marking a profound shift in Bitcoin's operational and cultural landscape.

Spot Bitcoin ETFs have yet another day of outflow, however, yesterday’s outflow was close to neutral. The market has seen fluctuating flows in these ETFs, with significant activity in some and none in others, reflecting mixed investor reactions. Recent substantial outflows echo trends from March, but analysts regard such fluctuations as typical for ETFs and not indicative of failure. Despite this volatility, the outlook for Bitcoin ETFs remains positive as they continue to draw institutional interest and shape market dynamics.

Avail, a blockchain data-availability protocol developed using Polygon’s SDK, has announced an airdrop of 600 million AVAIL tokens, marking its one-year anniversary since spinning off from Polygon Labs. The "Unification Drop" aims to bring together various blockchain communities by rewarding developers, governance contributors, educators, rollup users, stakers, and others who have significantly contributed to the ecosystem. Avail's infrastructure includes three segments: Nexus for cross-chain transactions, Fusion for liquid staking on chains like Ethereum and Bitcoin, and DA for scaling rollups through technologies like KZG commitments. The airdrop will distribute tokens to 354,605 wallet addresses and includes significant allocations for various roles across multiple blockchains, including Ethereum, Bitcoin, Solana, Cosmos, and more, emphasizing a unified Web3 environment.

Intermediate

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Runes Protocol Revolutionizes Bitcoin with New Token Capabilities Ahead of 2024 Halving

Saga is a Layer 1 blockchain protocol that allows developers to design their own dedicated chains for running applications. Learn more in this article.

 universe right now is the lack of accessible tools for developers. Many people interested in designing new 

 projects struggle to find the right software developer kits (SDKs) for their projects. The Saga ecosystem aims to fix this issue by providing unparalleled support to app and game developers. 

Can the Saga ecosystem really become the premier chain for web3 development? Keep reading to learn how it works and see whether it's likely to attract new developers.

 blockchain protocol. It allows developers to design their own dedicated chains for running applications. People who work on Saga all share the same security, scaling solutions and SDKs, but they each get their own unique chain that they can customize to suit their needs.

 of technology, crypto and finance enthusiasts. CEO Rebecca Liao is a co-founder of the Skuchain project, the designer of the 

 and a former international corporate attorney. Other members of the founding team include former Tendermint executive Jin Kwon, Blocktech Ventures founder Bogdan Alexandrescu and 

. They realized that there was a major need for a development-focused blockchain specifically designed for game project development. Saga's mission has attracted many major investors, 

Saga aims to create a new system for web3 project developers. Currently, most developers have to choose between the ease of working on an established chain like 

 versus the convenience and customization of designing their own chain. The Saga team realized that the most effective option for game developers would actually be a combination of the two types of development environments.

Saga wants to let developers set up their own sovereign blockchain so they can decide how things like 

 and transaction fees work. However, Saga also aims to provide extensive support for developers in its ecosystem. Its underlying framework ensures that people still have excellent security and a reliable validator set, no matter what their gaming project is.

 ecosystem, whose interchain web development standard is a set of protocols that allows a broad variety of blockchains to communicate with each other. The Saga network uses the 

 and the shared security system of the Cosmos ecosystem to manage the network, and has created its own Layer 1 chain that runs the entire Saga ecosystem and can do things like automatically launching 

The Saga Mainnet handles each developer's compiled smart contract binary. However, it also runs parallel dedicated chains that function as virtual machine (VM) modules capable of handling a specific set of smart contracts. End users for blockchain games and other apps interact only with the dedicated blockchain, while the developer's system manages the fees and individual transactions on the Saga Mainnet.

All of the chains on Saga are validated through optimistic coordination, which requires every Saga validator to validate each chain in the Saga ecosystem via 

 validation, verifying transactions by temporarily locking Saga tokens.

The Saga network contains a lot more than just the basic features offered through the Cosmos SDK and ecosystem. In addition to the software development tools and helpful interface for Saga's validators and developers, the ecosystem also contains the following features.

The overall layout of the Saga ecosystem starts with the Saga Mainnet. Built on the Cosmos hub, this framework includes a full validator set and a dedicated blockchain for handling all smart contracts. The basic protocols are passed on to each child chain in the system, and information is relayed back and forth between the main chain and all of the secondary chains. Saga's validators stake tokens, and then check to make sure every element of the topology follows Saga’s regulations.

 are a method for creating a dedicated blockspace that a developer can manage. These chainlets function as virtual machines that can handle smart contracts and automatically launch Celestia rollups. Each chainlet is its own blockchain that handles nothing but a specific gaming project. Developers decide on the gas fees they'll charge users, and can add chainlets as their projects expand and require more throughput from the remaining validators.

Saga's shared security relies on both the Cosmos hub and its own set of validators to secure the network. Validators on Saga’s network are monitored by auditors who can catch potential issues with individual dedicated chains. If anyone in the validator set fails to properly confirm a smart contract, their staked tokens are automatically confiscated.

 is a publishing system for gaming developers who want to create their own blockchains with help from Saga. It offers infinite scalability, seamless 

 and transactions without gas fees. In addition to use of the Cosmos SDK, developers who choose to publish their game through Saga Origins receive access to a variety of helpful marketing and distribution tools.

 is an interconnected blend of all the developers and projects in the Saga system. Though each sovereign blockchain is fully independent of others, they all join together to offer users a variety of exciting web3 projects. People interested in checking out the latest blockchain designs can join the Multiverse and browse all the neat concepts built on Saga.

To help get the Saga validator system started, Saga released 

 to its community members. People were eligible for the 

 if they had participated in the staking program or played in tournaments to promote Saga ecosystem games. The airdrop eligibility period required remaining validators and other participants to be active between January and October of 2023. Once the airdrop began allowing people to claim tokens, it continued to run until Mar 27, 2024.

 consists of four separate phases. The company has already completed the Andromeda and Cassiopeia phases, which focused on designing the Mainnet and setting up the system of Saga validators. Currently, the Saga team is in the Pegasus phase, which is about releasing tokens and opening the Saga Mainnet to the public. Sometime in late 2022, Saga’s team hopes to reach their Mainnet V2 phase, which will prioritize a new version of the Saga Mainnet with more features and options for dedicated blockspace.

SAGA tokens are the primary method for paying fees on the Saga network. These tokens are also used for staking, and function as a method of confirming Saga transactions. There are a total of 

, of which around 90 million have thus far been released. Saga plans to distribute its tokens as follows:

SAGA is still in the early stages of its token launch. However, it’s already surprised investors, having debuted at $4.91 on Apr 9, 2024 before quickly surging to its ATH to date of $7.60. It then steadily declined over the next few days to its current price of $3.06 as of Apr 19, 2024.

 SAGA, with its experts believing SAGA’s price will reach $15.73 by 2025 and decrease in 2027 to $6.27, before rising again to $13.45 by 2030. This bullish sentiment is amplified by analysts at Changelly, 

 SAGA’s price will increase to $6.91 in 2025, $14.21 in 2027 and $44.36 in 2030.

Looking to trade Saga tokens? Bybit now offers SAGAUSDT Perpetual contracts. To get started, you’ll first need to 

, then fund it with cryptocurrency and navigate to the 

SAGA has done an extremely impressive job of attracting users, and seems poised to become the big coin debut of April 2024 with its high price.

However, it's hard to say whether SAGA can maintain its price in the long run. It's quite common for new startups to have a strong start and then drop in price once their project fails to take off. If the Saga ecosystem can’t attract new developers and continue to release impressive projects, investors could see some major SAGA losses in the future.

Since this coin is so volatile right now, investors need to 

. It has the potential for both big profits and big losses, so you’ll want to carefully consider how these price shifts might affect your portfolio. For best results, avoid investing more than you can afford to lose, make sure you diversify your investments — and 

By offering developers the chance to create their own dedicated chains, Saga offers a more convenient and scalable system for blockchain gaming. Its helpful features and low transaction fees have already attracted many people, and it's no surprise that many others are interested in the project. Furthermore, SAGA tokens have had a promising start with extremely impressive growth. If the Saga company can successfully capitalize on its early buzz, it has a bright future.

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Saga (SAGA): Catalyzing the Multiverse With Scalable Chains

Discover how to easily mint and buy Runes tokens with the Xverse Runes wallet and Magic Eden marketplace, unlocking investment opportunities on the Bitcoin blockchain.

) reward halving is a monumental occasion for both the crypto industry and users. Halving is a once-every-four-years event that always draws significant attention. However, the April 2024 event is special on an entirely new level, thanks to the highly anticipated launch of the 

 protocol, schƒeduled to go live right after the halving kicks in.

Runes is a revolutionary standard for creating fungible tokens on the Bitcoin blockchain. The standard is widely anticipated to set a new paradigm on the Bitcoin network, turning it into a thriving multi-asset ecosystem with significant trading and investment opportunities. Most importantly, Runes is vastly more efficient and user-friendly than BRC-20, an earlier Bitcoin fungible token standard.

 is a new token standard and technology for creating fungible cryptocurrencies on Bitcoin’s blockchain. (This new token standard is not to be confused with RUNE, the native token of 

). It allows users to issue and manage fungible tokens using Bitcoin's unspent transaction outputs (

), which represent the outputs of standard Bitcoin transfers. The concept of Bitcoin Runes was introduced in September 2023 by Casey Rodarmor, the enigmatic developer who also created Bitcoin 

Runes is widely expected to go live right after the Bitcoin 

 event (scheduled to occur on Apr 18, 2024, it's estimated to actually occur on April 19 or 20). The first Runes token will most likely be issued by Rodarmor himself. Following that, it's expected that a large number of Runes tokens will appear on Bitcoin, quickly leading to a thriving trade and creating investment opportunities on a scale that Bitcoin has probably never seen before.

Back in 2023, Rodarmor's Ordinals technology opened up a unique way of creating Bitcoin-based 

. Runes will now usher in an era of fungible crypto tokens on the blockchain. While it's not the first fungible token standard for Bitcoin, it's estimated to be the first technology that facilitates an efficient and user-friendly way of creating Bitcoin-based cryptos.

Runes will introduce a lightweight method for creating fungible assets on Bitcoin, thanks to its utilizing the blockchain's native UTXO model. The process of creating and transferring Runes tokens involves attaching messages, called Runestones, to a Bitcoin transaction. As such, there's no need to create any additional UTXOs or other unnecessary elements on the network. By using ordinary UTXOs generated during Bitcoin transfers, Runes avoids placing any significant load on the network.

Which Projects Are Building on the Runes Protocol?

Although the first fungible Runes tokens won't appear on the network until after the halving event, some projects have already begun experimenting with the concept by introducing Runes-themed Bitcoin NFT collections based on the Bitcoin Ordinals protocol. Typically, these projects promise 

 of their future fungible tokens to people who have purchased NFTs from their current collections.

Runestone is one of the earliest and most popular Runes-themed projects. It’s a Bitcoin NFT collection based on Ordinals, with each NFT depicting a 3D stone that has an ancient rune symbol inscribed on it.

There are 112,400 Runestone NFTs in the collection, and many of the items are listed for sale on 

, a popular multi-chain NFT marketplace. As of Apr 17, 2024, the most expensive Runestone NFT is listed for an asking price of 787 BTC. Notably, with a market cap of 9,779 BTC ($606,042,181), Runestone is currently the highest-capped Rune-themed Bitcoin NFT collection and the second highest-capped NFT collection overall, right behind the legendary Ethereum-based 

Rune Pups is another high-profile Runes-themed Bitcoin NFT collection. Each NFT in the collection is a rune-laced drawing of a broadly smiling creature, which does somewhat resemble a pup. There are 10,778 NFTs in the collection.

Pups are among the most popular Runes NFTs, with a highest asking price of 777 BTC (for item #10,733) and a market cap of 1,301 BTC (~$80 million).

 is a collection of 21,000 NFTs, each with a dynamically changing set of ancient rune symbols. Owning an NFT from the collection will automatically open up ways to mine new fungible tokens that the project plans to introduce as soon as Runes is operational. As such, this collection goes beyond simple NFT ownership, turning your non-fungible tokens into yield-generating assets.

Runes isn't the first fungible token standard for Bitcoin. This honor belongs to the 

 standard introduced in March 2023. Unfortunately, BRC-20 is a cumbersome and inefficient way of creating Bitcoin-based fungible cryptos. It relies on inscribing data into tokens using the Ordinals protocol, and generates a lot of "junk" UTXOs on the network.

Due to the novelty of the BRC-20 technology, many Bitcoin users jumped on the idea of using it to issue their tokens, seriously congesting the network and creating a significant "anti-BRC-20" sentiment within the Bitcoin community.

Runes fungible tokens are, however, vastly different from 

. The Runes technology utilizes Bitcoin's native UTXO model, doesn't generate "junk" outputs on the network and places a very modest load on the blockchain. Thanks to all of these advantages, Runes tokens are likely to lead to a much more active and robust trade in fungible assets as compared to BRC-20.

In Runes terminology, issuing a new fungible token is called “etching,” while adding tokens to the existing supply is known as minting. If you prefer to etch and mint Runes tokens on your own, the process is relatively easy for the technically minded.

 software and run your own full network node. Then, install 

 for the Ordinals and Runes protocols. The latter has been implemented under the Ordinals software packages. Ensure that you thoroughly practice etching, minting and transferring on the test network to familiarize yourself with the protocol.

You can also pre-buy Runes on Magic Eden. Probably the best wallet to use for these purposes is Xverse's 

, as it’s specifically designed for user-friendly Runes token management and easy integration with Magic Eden. This marketplace is currently the go-to platform to get early Runes tokens and Runes-themed NFTs.

You can buy any Runes-themed Bitcoin Ordinals NFT on Magic Eden 

 from the Runes protocol directly to your wallet 

once the protocol's operations kick in. Meme tokens minted under the Runes protocol c

ould potentially experience explosive growth similar to the surge o

If you’re not able to buy your NFT in time, it’s still not too late to get your hands on one of the most promising assets in the market. You can still wait for Runes to be listed on 

The arrival of the first Runes tokens is expected to liven up Bitcoin like virtually nothing before. Ordinals were a paradigm-setting innovation, but they were focused on non-fungible assets, which have traditionally lagged behind cryptocurrencies in terms of trading and investment applications. BRC-20 tokens were the first fungible assets on the Bitcoin platform, but their inefficient, network-clogging mode of operation severely limited their adoption and use cases.

Runes are different: For the first time in the history of Bitcoin, there’s an efficient, native way of creating and managing fungible crypto assets on the Bitcoin blockchain. This heralds a plethora of unique 

 for Bitcoin enthusiasts — at the very moment when the much-anticipated halving has arrived!

Advanced

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How to Get Into Bitcoin Runes With the Runes Launch at Halving

Nolus is a decentralized finance lending protocol with cross-chain capabilities. Learn more about how it works in this article.

One of the big advantages of decentralized finance (

) is that it provides more options for users. People who cannot get traditional loans because a typical bank deems them "high-risk" can turn to the DeFi sector to borrow crypto assets. The Nolus Protocol is a new DeFi lender that offers users all sorts of exciting opportunities. To see how this intriguing project works, explore this guide to learn all about Nolus.

 is a DeFi lending protocol. It has cross-chain capabilities that let people choose the most favorable rates possible and avoid the need to save up funds for liquidity.

Nolus was founded by Ivan Kostov and Kamen Trendafilov. Kostov worked in traditional finance, while Trendafilov has a background in marketing and business. During their time in these sectors, Nolus's founders realized that blockchain networks had the potential to revolutionize banking. They decided to join together and create a new leasing system that makes the most of DeFi products instead of just trying to mimic past banking methods.

Nolus started work on its plans in 2022 and officially launched its mainnet in 2023, having successfully completed several investing rounds and receiving 

 Token Metrics, Autonomy Capital, Everstake and more.

Nolus aims to tackle three problems common in crypto lending markets:

 software developer kit (SDK). Its code is entirely open sourced, and is updated and changed only when all stakeholders in the Nolus community vote to do so. According to the Nolus white paper, its ecosystem’s goal is “to build a novel user experience–driven automated money market” that facilitates direct interactions between lenders and borrowers without involving any other users.

The Nolus lending method starts with lenders choosing to supply 

 to the system. Any borrower who submits a down payment can get a loan from this supply of stablecoins. Both the coins and the down payment are 

, and interest is determined based on the value of the items. There’s no fixed repayment schedule, but the smart contracts ensure that interest is automatically removed from the collateral, and then paid to the lender at regular intervals. Once the user decides to repay the lease, the original assets are released from the smart contract.

Nolus's lending protocol includes many ways for customers to profit and enjoy convenient services. Here are the main DeFi products you can access through Nolus.

DeFi leasing on Nolus is designed to be as convenient as possible. Customers don’t have to go through a lengthy application or pay a lot of fees to other users. You just enter your collateral and get a loan of up to three times the value of the initial investment. Interest rates vary between 11% and 18%, based on the market value of the digital assets. The 

 allow the loan to be repaid on your own schedule. However, keep in mind that you pay more interest if you wait a longer amount of time to repay the loan.

If you want to earn money based on your existing crypto, you can join one of the many 

 on Nolus by submitting stablecoins in exchange for interest-bearing Nolus crypto. When you're ready to withdraw your funds and stop participating in DeFi leasing, you can cash out your Nolus tokens to receive your initial asset, plus any additional interest or network fees you’ve earned.

Nolus's system of money markets isn't the only thing they provide. Users who decide to 

 a crypto asset on Nolus can earn more money. The Nolus ecosystem offers the option of staking NLS tokens in exchange for various incentives. Lenders receive higher amounts of rewards for lending stablecoins, and borrowers get a lower interest rate.

Nolus has had some impressive growth since its launch in 2023. In just six months, the lending protocol has assisted with thousands of loans, collectively worth $8.6 million in total. Its team calculates that they've managed to achieve an average 

Nolus hopes to expand on this momentum in 2024. Its main plan is to continue marketing the lending protocol heavily, attracting more users who want to do their own research and find the best possible loans. To further attract users from the DeFi sector, Nolus aims to add more support for other crypto tokens and increase network liquidity. Nolus stands for community-led governance, so they don't have a long-term road map in place. Instead, they plan to evolve and adjust to suit whatever community needs arise in the future.

. It allows users to adjust their interest rates, and it's also a 

. People with NLS tokens can vote on how the platform is run and help implement new changes for the platform. The NLS token has a total supply of 1 billion. Nolus’s plan is to gradually mint tokens over a ten-year period, and implement a token buyback program to help maintain value. NLS token distribution will be as follows:

When the NLS token was released in the summer of 2023, Nolus prices were fairly stable. However, now that investors can sell their NLS tokens, prices have become more volatile. Starting in December 2023, NLS prices 

, and although the token currently seems to be dropping from its all-time high of $0.10, more price increases seem likely in the future.

Not only is the market for the NLS token quite bullish right now, but the Nolus lending protocol is also attracting a lot of positive attention in the crypto space. If the network can maintain its positive attention and attract more users, prices seem likely to rise even further. CoinCodex predicts Nolus prices will stay in the $0.04 to $0.19 range for 2025, and hit 

. This attitude is backed up by crypto influencers such as Crypto Revolution, 

 an underrated crypto with a lot of potential for growth.

The Nolus project is a well-thought-out crypto protocol that offers users significant advantages. Its innovative approach to lending could potentially attract a lot of users from the DeFi space. In addition to having a reliable system backed with effective technology and a detailed white paper, NLS digital assets have also experienced some promising growth patterns. The crypto asset has had a slow yet steady climb in price, and now that it's trending in crypto news, it seems poised to take off.

However, keep in mind that it's still important to 

 on digital assets. Some crypto investors might find it concerning that the Nolus project is mostly backed by marketers, instead of blockchain enthusiasts. There have also been some tech issues, such as the 

 that led to some unnecessary margin calls. Subsequent issues could limit price appreciation of its crypto assets. Therefore, it's necessary to approach Nolus with caution and not overextend your finances.

Nolus's DeFi lease system allows people to obtain easy access to crypto. Its innovative approach provides investors with significant advantages. Unlike traditional finance, there's no lengthy application process, and in contrast to many other blockchain networks Nolus doesn't have frequent margin calls or high network fees. As long as Nolus doesn't run into any technological issues or financial problems, its network is likely to have a lot of success in the DeFi space.

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Nolus (NLS): Crafting Liquidity's Future With Leading DeFi Leases

Candlestick

Trading

The Harami candlestick formation is used to signal traders a trend reversal is approaching. Not only is it easy to be spotted, but it also yields a good risk-to-reward ratio. Learn more.

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The Harami candle is a Japanese candlestick formation that can signal trend reversals, offering crypto traders a good 

 trade setup. The pattern is created with two candles, a very tall candle followed by a substantially shorter candle.

Harami patterns can be found in any time frame. The process of trading them is fairly straightforward once you’re comfortable identifying them.

The Harami candlestick formation is a reversal pattern consisting of two candles. The first is a tall candle continuing a trend, and the second candle is significantly shorter, of an opposite color, signaling a reversal of the trend. The first candle’s body must completely engulf the second candle’s body.

The Harami is a Japanese candlestick pattern that is extremely popular among crypto traders. It’s easy to spot and gives traders a relatively tight risk range. As a result, the Harami pattern tends to yield a good risk-to-reward ratio when trading it.

“Harami” is a Japanese word meaning “pregnant.” That image makes it easier to grasp what the Harami chart pattern suggests. Just like a pregnant woman giving birth to a new baby, the Harami pattern gives birth to a new trend. Some analysts might say the shape of the pattern resembles a pregnant woman, too.

There are two types of Harami patterns: bullish and bearish.

Interpreting the Bearish Harami Candlestick Pattern

A bearish Harami occurs at the top of an uptrend. The pattern starts with a large, bullish green candle, followed by a smaller bearish or red candle.

A key component to the bearish Harami pattern is that the second candle must gap lower, in order to signal the prior uptrend has weakened. Within the crypto market, trading is continuous — 24 hours per day, 7 days per week. Therefore, it’s sporadic to see a gap up or down in crypto.

Knowing this, look for the second bearish candle to open — and then immediately sell-off. The body of the first candle needs to engulf the body of the second one completely. This is key to the Harami pattern, as prices are so weak that they can’t revert to a bullish momentum to the previous high, signaling uncertainty and a potential trend change.

Interpreting the Bullish Harami Candlestick Pattern

The bullish Harami candle pattern is the opposite of the bearish Harami and is found at the end of a downtrend. The first candle of the pattern is a large, bearish (red) candle. Then, prices gap higher on the next candle, substantially smaller and bullish green candle.

Within cryptocurrency markets, there likely isn’t going to be a gap higher. As a result, the bullish move will occur immediately after the close of the first candle. It’s important for the body of the second candle, the bullish green candle, to be completely engulfed by the body of the first red candle.

The bullish Harami hints that the trend is shifting from down to up.

The Harami is a two candlestick pattern. The first candlestick is quite tall in size. The second candlestick is substantially smaller. The body of the second candle must be contained or engulfed within the body of the first candle. Ideally, you want to see the second candle at less than half the size of the first candle.

This is where the image of a pregnant woman makes sense: she would be the first (tall) candle, and her baby is the second smaller candle embodied within the first.

An important distinction is where the second candle needs to gap on the open in the opposite direction of the first candle. Within crypto, gaps are rare, so that the patterns will look slightly different.

For example, above we see a bullish Harami develop on the 4-hour chart for LINK. In this chart, LINK is in a downtrend that corrects lower by about 30%. Then, a larger-than-normal bearish candle forms, followed by a small green candle. These two candles together create the bullish Harami. At that point, a new uptrend kicks off and LINK rallies over 40%

Identifying Bullish and Bearish Harami on a Trading Chart

Now that you’re familiar with the shape and structure of the Harami, it’s critically important to understand where you’ll find this pattern within the cryptocurrency market.

Bullish Harami patterns are the kickoff to new bull trends, just as we see in the Ethereum chart, above. Therefore, you only find them after a downtrend. After a series of lower highs and lower lows, the bullish Harami pattern starts with another big, bearish candle. This suggests the downtrend has accelerated and is possibly capitulating.

As the candle exhausts, a quick rally begins but stalls. In essence, the sellers are depleted, but the buyers haven’t shown up yet. This carves the second candle of the pattern, which is smaller and is encompassed by the body of the first candle.

The pattern is confirmed when the market continues to rally while holding above the recent low.

The opposite is true for a bearish Harami formation.

The bearish Harami is the kickoff to a new bear trend. Thus, it is seen only at the end of an uptrend. As the trend rallies higher, such as in the XRPUSD chart above, the Harami starts with a large green candle, which is visible as a blow-off to a mature trend. Unable to extend any further, the price begins to fall as the second candle’s high holds below the close of the first candle.

No significant progress is made to the downside, and the second candle’s body is engulfed by that of the first candle. This price behavior suggests the market is so weak that it cannot rally back to new highs.

Absent new buyers, the price falls further, beginning a new downtrend.

Some Japanese candlestick patterns have similarities and may be difficult to distinguish from one another. For example, the Harami Cross candle is a specific type of Harami pattern. It has some similarities to the 

, but there are some differences in using the two.

First of all, the Harami Cross is a combination of the Harami pattern and a star doji.

The second candle of the Harami Cross is a star doji that looks like a plus sign. The same principle applies: the plus sign must be engulfed within the body of the first candle.

The doji candlestick pattern has some similarities to the Harami Cross. The most obvious similarity is that a star doji is one of the five different types of doji patterns. A specific type of doji is being inserted into the second candle of the Harami Cross.

However, the doji pattern is a one-candlestick pattern, while the Harami Cross is a two-candle pattern. The doji by itself is trendless. The doji pattern implies indecision, and we aren’t certain what the next trend will be.

On the other hand, the Harami Cross is at the forefront of a trend reversal. So coupling the star doji with the large candlestick of the Harami yields a specific pattern that suggests the trend is about to reverse.

Some benefits of trading the Harami pattern include the powerful signals it generates. These patterns are easy to spot, which can yield strong risk-to-reward opportunities. Below you’ll find a step-by-step process to identify and trade both types of Harami patterns.

During the first part of 2021, Bitcoin was on a tear to the upside. There were periods of brief dips, which merely provided consolidation zones to launch the next rally. 

One consolidation zone ended with a bullish Harami pattern. Let’s inspect this setup more closely. 

In January 2021, Bitcoin started to consolidate its recent gains and was trending lower in a correction. A downtrend is the first step in creating an environment ripe for a bullish Harami (1).

January 21, the largest down day for Bitcoin, suggests that traders may be capitulating and a bottom may soon form. This large red candle becomes the first of the two candles in the Harami pattern (2).

Sure enough, the next day sees Bitcoin mildly pressing lower, but ending the day at a higher price. The body of this second candle is engulfed by the body of the first candle (3). This helps set up the bullish trading opportunity.

The stop loss should be set just below the Harami low point. In this case, there was a recent swing low just below this same price zone. Therefore, it would be prudent to set the 

 just below all of those low points near $27,480 (4).

Then, we calculate the distance between the entry point and the stop loss. In this case, the difference is $6,320. We want to double that distance and it becomes $12,640.

Add the new doubled amount to the entry price to calculate a take profit level. $33,800 + $12,640 yields a take profit level of $46,440 (5).

After a couple of candles, the long trade entry into Bitcoin is triggered. Then, the trader waits for the target or the stop loss to be hit. Prices come close but never hit the stop loss level, and eventually rally to reach the target.

Using Bitcoin’s daily chart as an example, in March 2021, the biggest cryptocurrency was rallying to new all-time highs. This rally had become quite strong and extended. In the chart below, symptoms of a top begin to emerge when a large green candle shoots up. This green candle will need to be larger than most other candles on the chart at that time.

Bitcoin is in rally mode, and in a clear uptrend (I). As the rally stretches to new highs on 13 March, as represented by the long green candlestick (first candle of Harami) indicating the buying pressure is strong in the recent trend.

The opening of the next candle begins a downward correction that stops about halfway through the first candle. This red bearish candle becomes the second candle of the Harami pattern (III).  

 Now, the trader waits for the low of the second candle to be broken to signal a bearish entry into the position (IV). The stop loss is placed just above the Harami pattern high (V). The target is at least twice the distance from the entry to the stop loss (VI).

Bitcoin’s price reaches the target within a couple of weeks without being stopped out. This is a good example that illustrates how the pattern can generate a tight risk range, with good risk-to-reward trades.

Does Using the Harami Pattern Guarantee Its Accuracy?

Keep in mind that not all trades will work out to your benefit. It’s unreasonable to expect all of your trades to be profitable. The same logic can be applied to the Harami pattern.

Even though the Harami pattern is easy to spot, and can generate winning trades with a good risk-to-reward ratio, that doesn’t mean that each trade will be a guaranteed winner. This is why we suggest using a 1:2 risk-to-reward ratio on the trading plans above.

This way, you can be right less than half of the time but still allow yourself an opportunity to grow your account since your winning trades are larger than your losing trades.

Cryptocurrency traders commonly follow Harami candlestick patterns. The Harami pattern is found frequently within crypto markets and the process of trading it is straightforward.

Traders enjoy the tight risk range and good reward potential that the Harami pattern offers. However, like any other 

How to Use Bullish and Bearish Harami Candles to Find Trend Reversals

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards