Smoke Market Analysis - Breakout with Volume - 03/12/2019
Breakout with volume
My last analysis was titled "The bears are weakening", and thus the bulls have taken control pushing prices higher. We have broken out of our falling wedge to the upsideand have made a "higher high" in the market. This comes at a time when lots of small obscure coins are making big moves. Viacoin and Groestlcoin both doubled in a day yesterday. The market today is a far healthier and more established market than the day I did my first analysis. A lot of people have commented on how they do not believe in T.A. or see the importance of this, but I think that my analysis while occasionally bearish in the short/mid term, is very confirming of a long term bull pattern emerging. Liquidity on the market continues to increase, average trading volumes continue to grow. Going long periods of time without a trade is becoming less and less frequent. Technical Analysis is like reading the weather, it's not always totally accurate, but it can help you get a forecast of things to come. I don't know if I've made any long term price predictions, but I do believe the technicals support a bull case with a target of $1 / SMOKE.
4 Hour rising wedge
This 4 hour chart shows us a rising wedge pattern forming. This is a very short term pattern that resolves by the 16th. What I am seeing out of it is that it may limit our upside to 1 BTS/SMOKE. The order books indicate a lot of resistance at that area as well.
Order Books
The order books are starting to look healthier than ever. We see heavy support coming in around the 0.5 BTS area, and heavy resistance mounting at the 1.0 BTS area. We now see a layer of orders on both sides providing some liquidity to help prevent price from slipping so easily in one direction or the other. That is a very positive sign of market growth.
Conclussion
I think we could be topping here on this run, but it could still push a little bit higher. If we do happen to break past 1.0, I would expect us to shoot up and do another massive pump and dump like it did the last time we passed 1.0.
