Bitcoin: Breakout with Climax Buy Volume
On April 13th Bitcoin broke the resistance of 61,300 and put in a high of 63,774.
April 13th was a buy volume climax bar (blue bar on chart) which was followed by
another bar which put in the all time high of 64,896.
April 15th was a buy climax bar as well but price failed to move higher and broke below
the buy climax bar of April 15th. This is not an indication of any reversal of price yet
as buyers still have a 60% chance of putting in a new high.
The selling that occurred today was not significant enough to flush out buyers. Today's
bar was a bearish bar but not too bearish. Even more importantly we are still above the
previous resistance around 61,000.
If price breaks below 60,000 and goes below 59,000 with some strength then
buyers might take some profit and we could see some further movement down
to lower support levels say around 53,000.
We'll see what tomorrow's bar brings!
Note: I am currently long Bitcoin.
April 13th was a buy volume climax bar (blue bar on chart) which was followed by
another bar which put in the all time high of 64,896.
April 15th was a buy climax bar as well but price failed to move higher and broke below
the buy climax bar of April 15th. This is not an indication of any reversal of price yet
as buyers still have a 60% chance of putting in a new high.
The selling that occurred today was not significant enough to flush out buyers. Today's
bar was a bearish bar but not too bearish. Even more importantly we are still above the
previous resistance around 61,000.
If price breaks below 60,000 and goes below 59,000 with some strength then
buyers might take some profit and we could see some further movement down
to lower support levels say around 53,000.
We'll see what tomorrow's bar brings!
Note: I am currently long Bitcoin.
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