BTC 20% pumps on the way + Next Stop $4280 if we break $5765
Just a quick bit of analysis based on previous support and resistance along with recent RSI. All on a 2 hour chart.
(Chart is in EUR, simply as that's when I trade with on GDAX)
We've just bounced off the $5765 resistance point and we're now hitting levels seen before the December jump in price.
We've had a strong bounce, pushing RSI up from 24 to 40 (we'd also bounced off 18 RSI not too long ago).
Will it continue to go up after this bounce?
I don't think so - simply because:
Next major support appears to be at $4280.
Don't get me wrong, I'd love for BTC to turn around, but it doesn't show any solid signs - yet.
That said, I personally don't think BTC will fall below $2k. Simply because there's a lot of buyers waiting and it's very possible that if the media starts shouting "bitcoin below $2k!" (or even $4k) - there might be a rush from the general public - who all know it was at $20k and *could* drop further, but will hope it goes back up to $10k+. We're all hopefuly - and greedy - in that way.
20% pumps?
Looking on a 2 hour chart over the past few days BTC (on GDAX) appears to have a bit of a repeating pattern.
1. Price 'creeps' down over a number of hours
2. Sharp drop
3. Bounce by approximately 20%, usually off a support line - but not always
4. GOTO 1
Over the past 4 days, there's been 3 significant bounces. Although if you're cynical these could also look like pumps. It seems odd that they all seem to reach the 20% increase mark before stopping - but that could simply be herd mentality.
(Chart is in EUR, simply as that's when I trade with on GDAX)
We've just bounced off the $5765 resistance point and we're now hitting levels seen before the December jump in price.
We've had a strong bounce, pushing RSI up from 24 to 40 (we'd also bounced off 18 RSI not too long ago).
Will it continue to go up after this bounce?
I don't think so - simply because:
- Pushback of the 6th or the 14th for the SEC/CFTC meeting is likely to cause uncertainty during this period.
- Short term it's bearish and there's a lot of fear around the SEC/CFTC (it appears) which is pushing down the price.
- No positive media news on BTC or crypto (this is a big indicator for me, as the markets are largely ruled by emotion....influenced by the media)
- We're consistently bouncing off an RSI of around 20.
Next major support appears to be at $4280.
Don't get me wrong, I'd love for BTC to turn around, but it doesn't show any solid signs - yet.
That said, I personally don't think BTC will fall below $2k. Simply because there's a lot of buyers waiting and it's very possible that if the media starts shouting "bitcoin below $2k!" (or even $4k) - there might be a rush from the general public - who all know it was at $20k and *could* drop further, but will hope it goes back up to $10k+. We're all hopefuly - and greedy - in that way.
20% pumps?
Looking on a 2 hour chart over the past few days BTC (on GDAX) appears to have a bit of a repeating pattern.
1. Price 'creeps' down over a number of hours
2. Sharp drop
3. Bounce by approximately 20%, usually off a support line - but not always
4. GOTO 1
Over the past 4 days, there's been 3 significant bounces. Although if you're cynical these could also look like pumps. It seems odd that they all seem to reach the 20% increase mark before stopping - but that could simply be herd mentality.
