Analytics provided by BBA
Welcome to the all new CoinTelegraph Weekly Market TA Report presented by BullBear Analytics. The timing of this new partnership could not have been any better given that it appears as though bitcoin is on the cusp of challenging price levels not seen in more than two years. While the trek up to the psychologically important $1000 mark will remain volatile, this will pale in comparison to the moves we will see if the ATH’s above $1200 are broken. That said, there remain some significant areas of resistance between current levels and 1K so we would steer clear of FOMOing into the market on either the long side or the short side.
We like to begin our correspondence with a quick market summary such as the one above, however the main focus of these reports is the market action itself. The charts tend to tell the story in cryptocurrency for a myriad of reasons, and we can use these tendencies to our advantage. So what are the charts telling us about the state of the market right now?
If we take a look at the weekly chart of BitStamp below we can see that market structure and market symmetry are painting quite a bullish picture. Following the recent weekend breakout above $600, price is now at the top of a supply area and bull trap top that goes back to June 2014. While this should be rather significant resistance, price seems to be reacting favorably at these elevated levels despite what should be an increase in sellers in here.
Why would we see more sellers? In the Spring of 2014, we saw a countertrend move that took price up to a $683.26 which was the last truly bullish move before the crash down into the $100’s & $200’s. […]
