Key levels
Short term
Supports—> S1: 8,700 & S2: 8,000
Resistances—> R1: 9,400 & R2: 10,000
Medium term
Supports—> S3: 7,400 & S4: 6,800
Resistances—> R3: 11,000 & R4: 12,200
Potential scenario
Bitcoin increased by 28% last week in barely 24 hours after it made a 5 months minimum at $7,550. With this pump, Bitcoin let us know that, even after several months of falls, it can turn into a very bullish trend at any moment.
The pump finished with a long upper wick testing the orange upward trend line. That orange trend line had been supporting the price from June until September, when it broke it downwards. Now, it is acting as a resistance for the price.
Once it has been broken upwards, a potential bull run will be very likely.
TA comment
The Bitcoin price is having a very volatile behaviour after periods with low volatility. This tells us that the big up or downward movements are preceded by ranging periods that can last up to a month.
To take advantage of it, we can incorporate to volatility indicators our strategy that will open positions once the volatility percentage is above a certain level. We have added the Cryptohopper ATR (will be fully added to Cryptohopper soon). This indicator will allow your strategies to open positions once the volatility is above 2%.
Also, we have added the indicator Aroon. In this way, this strategy will open positions when the volatility is above 2% and Aroon has singled a buy.
Pattern
Last week, we talked about the pattern Closing Marubozu Bearish. It can be easily spotted in sharp declines in the price. During last week’s pump, the sharp increase of the price made exactly the opposite pattern, the Closing Marubozu Bullish.
Closing Marubozu Bullish is a bullish pattern and is represented by one candle. This one has a long body and short, or none, wicks with an upward movement. I will generate a buy signal when spotted.
Short term
Supports—> S1: 8,700 & S2: 8,000
Resistances—> R1: 9,400 & R2: 10,000
Medium term
Supports—> S3: 7,400 & S4: 6,800
Resistances—> R3: 11,000 & R4: 12,200
Potential scenario
Bitcoin increased by 28% last week in barely 24 hours after it made a 5 months minimum at $7,550. With this pump, Bitcoin let us know that, even after several months of falls, it can turn into a very bullish trend at any moment.
The pump finished with a long upper wick testing the orange upward trend line. That orange trend line had been supporting the price from June until September, when it broke it downwards. Now, it is acting as a resistance for the price.
Once it has been broken upwards, a potential bull run will be very likely.
TA comment
The Bitcoin price is having a very volatile behaviour after periods with low volatility. This tells us that the big up or downward movements are preceded by ranging periods that can last up to a month.
To take advantage of it, we can incorporate to volatility indicators our strategy that will open positions once the volatility percentage is above a certain level. We have added the Cryptohopper ATR (will be fully added to Cryptohopper soon). This indicator will allow your strategies to open positions once the volatility is above 2%.
Also, we have added the indicator Aroon. In this way, this strategy will open positions when the volatility is above 2% and Aroon has singled a buy.
Pattern
Last week, we talked about the pattern Closing Marubozu Bearish. It can be easily spotted in sharp declines in the price. During last week’s pump, the sharp increase of the price made exactly the opposite pattern, the Closing Marubozu Bullish.
Closing Marubozu Bullish is a bullish pattern and is represented by one candle. This one has a long body and short, or none, wicks with an upward movement. I will generate a buy signal when spotted.