The massive BTC gain features 7 days ago was identified as 'a' whale submitting a buy order on three highest volume exchanges. Basic technical analysis indicates that BTC is highly overbought (RSI) as well as within upper bounds of a k=2 bollinger. Mean reversion principle as well as a wedge formed on the hourly chart suggest a short-term down price action.
An upward trend resistance line is unlikely to be penetrated so we should no longer see a bitcoin below 4500 in the near future. Long term confinement wedge (closing at end of April) provides two possibilities:
* Downbreak to support (previous resistance) of ~4200 or
* Upbreak from current resistance at ~5300 and the seeking of further gains, possibly past the 6000 zone.
The above variable will will depend on the fundamentals that arise as well as volume and volatility in the coming weeks.
Will provide regular updates on the development.
An upward trend resistance line is unlikely to be penetrated so we should no longer see a bitcoin below 4500 in the near future. Long term confinement wedge (closing at end of April) provides two possibilities:
* Downbreak to support (previous resistance) of ~4200 or
* Upbreak from current resistance at ~5300 and the seeking of further gains, possibly past the 6000 zone.
The above variable will will depend on the fundamentals that arise as well as volume and volatility in the coming weeks.
Will provide regular updates on the development.