There had been a big obvious Head & Shoulders patterns building up lately, that I sketched in pink. The neckline (red line) is around $6,000. If it would break, the consequences would be big and price would drop significantly, at least to 5800-6000. But, bulls have been in control of the market lately, possibly trying to raise the price only to sell at high prices and lead to a major dump, so if this is the case then they wouldn't be very inclined to let it happen. We can see that there has been a fake, that touched 50 MA and weirdly relieved back to 6650. It seemed suspicious, and now price already jumped to $7000 making an attempt to break 50 MA daily AND the upper resistance of the downtrend (yellow line) that has been in play since $10,000 (!!). In case this happens, Bitcoin could jump very fast to $8,000 and possibly higher.
Please see one of my previous analysis for a broader view:
Looks like a well setup bear trap.. Thought the 7000 break got rid of the bears but they acted wounded and drew in a lot of shorts recently expecting it to hit 5000 or lower..
walkerjitzu
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@alienteck, that's also what I think... plus, everyone is afraid to buy at these prices. A lot of bulls will feel safe to jump in only when prices are really uncomfortable, they will think that the halving is close so Bitcoin will go to the moon. And then, of course, Bitcoin will insanely dump