cryptomagic987

Bulls moved it up, so what is next?

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
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The bullish rally was strong and easily predicted due to good buying conditions. Normally, we would expect a minor correction that forms a bullflag and moves up higher, but the last time this happened with low volume , the momentum was lost and selling became an easier win.

Period of high uncertainty! If the rally fails to fully materialise and produce further momentum, a sharp drop in price could be on the cards.

Proceed with extreme caution!
My latest on this is as follows:

Volume is low so it's extremely easy for the market to swing very quickly! The probability of calling the next move is extremely low. However, below is my current view.

Bulls - needs to rally to 3700 minimum in the next 8 hours or so. If not then the chances of bears pushing a bearish cross on MACD whilst the RSI remains over 50 is highly possible and we could see high selling pressure to drop down to unknown levels but probably 3500 minimum. If the rally to 3700 appears, we should be looking for consolidation and volume increases over a day or so to indicate if we will start punching up towards the 5k mark or potentially created a good deal for bears to drop the market quickly.

Bears - with the bull flag currently forming, there is a high risk of a break up higher than the last rally. As above though, a failed confirmation of the bull flag will mean we are more likely to go lower in the short-term.
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