Home Crypto Bitcoin News Is there substance behind bitcoin's rally?

Is there substance behind bitcoin’s rally?

Like an oasis in the desert, bitcoin showed noticeable positive price movements today, in the midst of an overall bearish market. However, is there any logical reason for this positive action?

Bitcoin charts

1-day

Image Courtesy: Tradingview.com

Bitcoin’s daily candle chart showed today’s substantial move upward in price, which also included decent volume. It appears as though price may be in the middle of a typical Elliot Wave pattern, possibly heading to a fourth wave. (Wave four is a correction wave downward before price continues up toward wave five.)

The bottom Bollinger Band also points in the opposite direction of price, indicating increased volatility.

4-hour

Image Courtesy: Tradingview.com

Bitcoin’s 4-hour chart showed a rather long period of inactive price consolidation after the last significant rally. This lengthy, multi-day period allowed a tightening of the Bollinger Bands toward price, leading to the strong pump and increased volatility seen over the past 24 hours.

1-hour

Image Courtesy: Tradingview.com

Bitcoin’s 1-hour chart showed some very long wicks to the upside. Seeing these wicks might mean false/unnatural volume or manipulation is present. On that note, one might question whether this move up in price was genuine increased bitcoin buying and sentiment, or simply manipulation and stop loss runs.

In a recent Tweet, The Crypto Dog posted a bitcoin chart highlighting a giant wick that poked just above another candle’s wick (resistance), likely stopping out orders before continuing its vertical price path later.

Potential news related events

A recent article from NewsBTC highlighted a potential correlation between the Asian stock markets and the crypto markets.

According to NewsBTC’s article, “[t]he mainland Chinese stocks today jumped more than 3 percent, its best since early November 2018.” Similarly, ether surged north about 14% during roughly the same time span. Bitcoin also increased by 3%.

Within the same time frame as all of the mentioned crypto action, Financial Times posted an article relating the positive Asian stock moves to recent encouraging sentiment regarding U.S. and Chinese trade dialogue. Trade difficulties made the two sides uneasy during 2018. This year appears to have brought optimism. As stated in the Financial Times article, President Trump recently tweeted about good vibes from new meetings. Further discussions reportedly carry on this week.

The NewsBTC article posited President Trump’s Tweet may have positively affected the crypto markets during Asia’s recent trading hours. Additionally, the news outlet noted positive price action surrounding European equities in association with Trump’s Tweet.

 

*This article is based on opinions and speculations from the author and others, and is not in any way financial advice. Writing about price levels is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.

The above is to be considered opinion and not investment advice in any way, as an unbiased media, no one interferes with the Editorial content of CryptoInsider.com, writers have freedom to choose their own direction, members of Crypto Insider do not participate in trades based on content.

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BTC: 1HozPdTTJahPigLXwMShErhubZLobBhFPL
ETH: 0xDf4d2529D777a80717E85Ed2269830ad6265951B
LTC: LMT3LCbCSvActkVo4dgzbHjn1HPrCgKch2
BCH: 17sFsLgZq9jibtqi5Bo5SiUcCD4TG8RQwE

Benjamin Pirus
Benjamin Pirus
BJ is a full time writer, editor, and trader in the cryptocurrency space. He has written many professional articles for numerous ICOs, news sites, and other interested parties in the crypto space. He is also a trader, staying up to date with the crypto markets constantly, and dabbling in traditional financial market trading occasionally.

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