Bitcoin: Reversal Out Of Buy Area, May Rise Over Coming Days
Yesterday Bitcoin reversed after it fell into the buy area mentioned in my previous post.
The drop into the area was incredible strong, and actually caused the price to break through both the small buy area I said to watch for a reversal and the larger buy area it was contained within. Like Etherium, the candlestick that shows the drop also ended with a large spike on it, suggesting the well capitalized traders/investors (the whales, as they're known) bought a large amount of Etherium during the drop. The fact that a sharp rise took place just after the drop is further evidence the Whales bought, and hints that we may see the price continue to rise over the coming days.
The point to watch now is the area I've marked.
If the sharp rise has been caused by the Whales buying large quantities of Etherium there's a strong possibility they weren't able to buy the full amount they wanted during the drop. If this is true, we could see the price move back to the point where they bought (the area I've marked) and then reverse as they buy more Etherium.
The price has been falling towards the area this morning, so we could it fall back in this afternoon or later on tonight.
As usual, if the price falls back into the area watch for candlesticks with large one sided wicks and bullish candles that are bigger than the prior bearish candlestick to form, as they both signal the price is about to reverse.
The drop into the area was incredible strong, and actually caused the price to break through both the small buy area I said to watch for a reversal and the larger buy area it was contained within. Like Etherium, the candlestick that shows the drop also ended with a large spike on it, suggesting the well capitalized traders/investors (the whales, as they're known) bought a large amount of Etherium during the drop. The fact that a sharp rise took place just after the drop is further evidence the Whales bought, and hints that we may see the price continue to rise over the coming days.
The point to watch now is the area I've marked.
If the sharp rise has been caused by the Whales buying large quantities of Etherium there's a strong possibility they weren't able to buy the full amount they wanted during the drop. If this is true, we could see the price move back to the point where they bought (the area I've marked) and then reverse as they buy more Etherium.
The price has been falling towards the area this morning, so we could it fall back in this afternoon or later on tonight.
As usual, if the price falls back into the area watch for candlesticks with large one sided wicks and bullish candles that are bigger than the prior bearish candlestick to form, as they both signal the price is about to reverse.