Currently BTCUSD is range bound between 8275 and 9175 and has been for 6 days (so far) . One theory is that whales do a false breakout first to load up at a better price before taking the market in the opposite direction (at a time of light volume). Because bitcoin has been range bound for so long, traders will be placing their stops at the same place (around 8250 and 9200). The longer it remains range bound the bigger the initial move will be when it does break. Those addicted to trading will be trading inside the range with their stops just outside the range as well as the patient ones who have stepped out of the market waiting for that high probability trade. It is currently Sunday with light volume and if the breakout happens AFTER the main markets open in Asia (in 10 hours time) it won't be a false breakout imho. A fake breakout then would require a huge amount of collusion in the market (which would be very telling).
The green dotted line is a support line from lows in mar and july last year (on a log scale) but now is starting to look more like resistance. The market will soon tell us which it is. The longer this stays range bound the more moving averages converge so a breakout crosses more of those to create a snowball effect.
The green dotted line is a support line from lows in mar and july last year (on a log scale) but now is starting to look more like resistance. The market will soon tell us which it is. The longer this stays range bound the more moving averages converge so a breakout crosses more of those to create a snowball effect.
Comment:
Target 7,000.