Bitcoin broke though the 11k level and went all the way up toward the 12k level.
This movement has been issued on a low volume basis. Indeed, the volume hasn't risen significantly in order to support a movement and allowing us to build a strong case for the buyers.
It also important to take into account the fact that Bitcoin is now heading toward the downtrend formed by the recent highs at 13.8k and 13.2k.
Stochastic has been for the last few days in the overbought zone however we do not see any bearish divergence yet. The lagging characteristic of this indicator coupled with the low volume environment are factors that can trap the traders.
We could be heading toward another accumulation phase, Bitcoin evolving between the downtrend and the nearest support at 11k.
The current position of the Fed cutting the rates and therefore indicating that the bank will keep pouring money in the US economy is leading us to believe that Bitcoin could have a bright future ahead for the months to come.
We expect whipsaw for the days to come.
Raphaël Comte
Investment Analyst at Token Metrics
Disclosure: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. Its principal has advised and invested in many blockchain companies. A complete list of his disclosures, advisory roles and current holdings can be viewed here: ianbalina.com/pages/transparency........................ .
This movement has been issued on a low volume basis. Indeed, the volume hasn't risen significantly in order to support a movement and allowing us to build a strong case for the buyers.
It also important to take into account the fact that Bitcoin is now heading toward the downtrend formed by the recent highs at 13.8k and 13.2k.
Stochastic has been for the last few days in the overbought zone however we do not see any bearish divergence yet. The lagging characteristic of this indicator coupled with the low volume environment are factors that can trap the traders.
We could be heading toward another accumulation phase, Bitcoin evolving between the downtrend and the nearest support at 11k.
The current position of the Fed cutting the rates and therefore indicating that the bank will keep pouring money in the US economy is leading us to believe that Bitcoin could have a bright future ahead for the months to come.
We expect whipsaw for the days to come.
Raphaël Comte
Investment Analyst at Token Metrics
Disclosure: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. Its principal has advised and invested in many blockchain companies. A complete list of his disclosures, advisory roles and current holdings can be viewed here: ianbalina.com/pages/transparency........................ .
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.