It is folks shorting with leverage and getting stopped out that fuels the initial parabolic move, it continues as more and more traders get in line with the new trend. It can take months or years to run out of steam and for the momentum to change direction again.
Fundamentals are also in the favor of Bitcoin . As the bear market dragged on, transaction continued to tick higher. Segwit transactions are the majority of transactions now and they are cheaper and have effectively quadrupled the capacity of the blocks. Lightning is in advanced stages of consumer product prototyping. Many millennial cash app users will keep a portion of their savings in BTC as an hedge especially if the new trend continues through 2019. A trend that starts in early 2019 is likely to continue through 2020 thanks to the Bitcoin reward halving which will reduce the supply (and thereby caused by new coins) by half.
The price is finding along the of this , this is especially visible on the 15-minute chart.
The fact that the %50 fib is now support is very . It is one of many things that confirm the new trend, which started many weeks ago
Here are the major levels:
$4833 - Strong, 50% Fib
$5000 - Weak, humans like round numbers
~$5200 - Weak, 18 Sidereal month
~$5500 - Strong, horizontal resistance was support on the way down
$5811 - Very Strong Support during bear market prior to capitulation also critical 78.6% Fib
I wish I was there already, but its a long journey to get the knowledge and experience.
I picked up a nice buy at 4850 support, recovering some loses due to the bot buying in the retrace.
I didn't feel so bad after picking up that buy.
If it exits the pitchfork below $4800 there will be a lot of volatility, and it will likely find its way to $4410 eventually. I don't expect this but it is definitely in the cards.
I have however decided to stop trading BTC pairs for now, I'm going to switch the bot to USDT pairs, the bot is struggling with all the BTC movement at the moment.