Market Analysis

Bitcoin Price Analysis Jan.21: The Bears Are Still Here. Will The Crucial $3500 Hold?

from Crypto Potato 5 years ago 0 0 802

Yesterday, when most of the press was glad, celebrating that huge BTC candle that reached a daily high of $3772, we had some other insights:

“To all the bulls, it’s too early to celebrate: The volume was pretty weak, and since the sudden unexpected positive move, Bitcoin is slowly losing momentum and currently trading below the important daily chart’s 50 days moving average line (marked in white). The daily candle structure left a long wick at its top; this is not how a breakout looks.”

Unfortunately, we were right this time. That was a complete false breakout, and all the signs, including the decreasing amount of trading volume while BTC raises, were pointing on one outcome: Bitcoin lost more than $200 in less than two hours.

Bitcoin went back to its weekly low and in just under 120 minutes returned all the past week’s gains. As been said before – A Bull Walks Up to the Steps; a Bear Jumps Out the Window.

During the past week, we’ve talked about the no-volume BTC market which has marked its range between $3500 to $3700. We’ve said that the higher chances are to break down from that range, rather than to break up. Unfortunate to the bulls, we’re getting very close to that point.