15 minute candles
Starting at around 17:00 UTC we had a sharp sell off which dropped the price $264 on Bitstamp taking the price from $8117 to $7853. The drop quickly reversed and bounced slightly higher than where we started. It is also positive to note the increase in volume as the price climbed. A good bullish momentum evidenced in this move but what prompted this sell off?
1 hour candles
The best explanation I have found for this pattern was the breaking of the support of the ichimoku cloud on the 1 hour chart. We can clearly see that the dump starts at the same candle that broke the cloud.
This information is to record and preserve on chain my observations of this technical analysis system, I do not advise making trades with real money from this information. You may lose your shirt or other spurious items of clothing with a possibility of starvation and death if you trade on this information.
Practice accounts can be created for free at Testnet.Bitmex