Bitcoin did something crazy last night, almost managing to rise 500 points in an hour. This move got pushed down, but it showed something imporant - market was (at least temporarily) highly oversold. This caused a lot of overleveraged shorts to be liquidated, adding more fuel to fire.
This move made a great deal of sense, too. The number of shorts has explosively...
Very simple analysis using a wedge.
As I see it, Bitcoin has two options - either it jumps back to the 4000 area, maybe even providing a small breakout (and a new shorting opportunity) or closes below the bottom of the triangle and making a bigger drop.
As I see it, be patient before shorting it - short limit at around 3700 or 3980-4050 area.
Closing over 4050,...
