Friday Inferno market report

crypto.inferno (67)in #bitcoin • 8 years ago

TL;DR It’s hotting up in here.

It’s been a matter of two steps forward, one step back for bitcoin this week – until last night.

Yet another dip on Tuesday saw support hold, with the price never dropping below $6,300. Then a few hours ago, we had the green light on a mini-rally and a candle that pushed almost $300 higher. Volume wasn’t particularly strong, but picked up subsequently with another three green candles on the 4h.

The last of these had the highest volume, and pushed bitcoin to $6,800 – a key resistance level in its own right, but also where the descending resistance line for the whole of this year currently stands. We’ll need to see how this plays out and watch the daily close to know whether it’s sustainable. After such a strong move upwards, we can expect a correction. RSI is now showing overbought once again on the 4h, again pointing to it being time for a red candle or two. On the daily, BTC has now pushed above the 50 MA and price is gaining upward momentum. Ideally we’re looking for $7,000+ to break the downward pattern at this point. For now, we can say this is a critical moment: it’s decision time once again, and there’s only so much time left for bulls to take the initiative if they delay any longer.

In the alts, we’ve seen some big movers this week. XRP has been staging huge gains, adding 100% to its market cap in one 24 hour period. BCH has also risen fast – something very likely connected with the Bitmain IPO (more on that tomorrow). LTC also saw a fast rise yesterday.

What do we make of this slew of alt pumps? Are these the green shoots that indicate Alts Season is just around the corner? Or the canary in the coal mine that warns of an impending explosion in the price of BTC, levelling everything around it as the #1 digital currency soars skywards? (Which, incidentally, will be bad for the canary too.)

The crypto markets move fast and change, when it occurs, can be bewilderingly sudden. That’s true in both directions, so as ever, be cautious. Moments of extreme bearishness or bullishness are both times of great opportunity and risk.

In other news, Nobuaki Kobayashi – the trustee appointed to manage the affairs of the collapsed bitcoin exchange Mt. Gox – made a statement that he has sold around $230 million worth of BTC and BCH. Kobayashi’s selling earlier this year has been blamed for catalysing the downtrend. Evidently, the market doesn’t care this time.