Bullish progression

OKCOIN:BTCCNY   Bitcoin / Chinese Yuan
Since last January, after 2013 post-bubble retracement, price was holding in a very ranged price of 230$ - 300$ (average).

Bitcoin             , as a market, still very illiquid and sometimes can't absorb huge sell-off nor huge buy movements... even when the price "touch" resistances or supports levels. For example, we can find examples of this "out of the range" movements in march (sell movement), at the end of march (buy movement) May (sell movement), a huge one in July (buy movement), September (sell movement).

Finally, after September, a huge increase in the volume traded, not only "touch" the main downtrend line, price crossed it with strong volume . More volume traded this days than any moment of 2015. A buy movement.

I'd traced a Fibonacci retracement for the term run and another one for the short term.

Attending to the long term fibonacci retracement , we find that the first heavy resistance is placed at around 2100-2150CNY. This is a point to take into account for two reasons:
  • - Reversal of the price.
  • - Buying movement augmentation.

On the other hand, for the short term fibonacci retracement , there are two possibilities:
  • - Pullback and test the 1920-1900CNY range support.
  • - Continuation of the movement to the 2150-2100CNY range.

The main thing in this situation is to be very careful with short orders. The movement is very strong with lots of volume and it's no surprising if it goes up more than proposed. Its logical in terms of trends. We had already finished a year and a half downtrend so it's not very rare if after the "shock" and the next stabilization of the price to see strong buy movements as in this case.

Right now is more logical to be in the side of the buyers than the sellers
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