After the fierce upward price movement of the last three days, bitcoin appears to be cooling off. A 25% move from Monday, or around $13,000 was the resulting gain. Will $BTC start moving higher again, or is $64,000 a local top for now?
An unprecedented up move
Wednesday’s green candle for bitcoin was practically unprecedented in the history of bitcoin cycles. A towering candle took the price from $57,000 on Wednesday, to just over $64,000 during the day, until a pull-back saw the price fall briefly down to $58,000.
Source: Coingecko/Trading View
Taking the fibonacci tool from the top of the sideways consolidation to its bottom, it must be noted how beautifully $BTC respected each level. On Monday $BTC broke out and hit the 1.618, Tuesday hit the next 2.618, and Wednesday went straight through the 3.618 and topped well above the 4.618.
This is no normal bull market
In normal bull market conditions for this particular phase, $BTC would likely now traverse sideways, and probably a little downwards. This could take the form of another sideways consolidation move, or it could be a bull flag.
That said, we are not in any normal bull market. Many are still not understanding this. The buying pressure from the institutions and from everyone else is taking the supply out of the market at a furious rate.
Edward Snowdon recently predicted that a national government has been buying bitcoin, and this would probably not be surprising.
The first bigger government to get a decent $BTC position will potentially have a massive advantage over the rest of the world’s governments, and once this becomes known, a worldwide adoption frenzy could take place.
Break up or down?
Source: Coingecko/Trading View
Of course, this is purely speculation, and back to the bitcoin price, it looks as though $BTC is still attempting to break out. However, so far, the bounds of the triangle have kept the price inside. A breakdown might be the preferred option. That said, the trend is still up and unbroken, so stand by for some possible further rampaging from bitcoin. The close of this week will supply far more data points for where $BTC is going next. Trade safely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
