After Bitcoin’s impressive price moves yesterday (August 28th), trading overnight saw it’s price hold at its new level.
Yesterday, we reported on two impressive Bitcoin price boosts, one around midnight (GMT+1) and again at around noon. While the first took BTC almost $150 higher in just one 15-minute candle’s worth of trading, the second took it up and over the $7,000 for the first time in three weeks.
Since those movements yesterday, the most-traded cryptocurrency by volume, has seen its price move largely sideways, oscillating around the $7,050 mark, while finding resistance at $7,100. Here’s a chart from Trading Views show the moves we mentioned, and that narrow channel within which Bitcoin’s price has been moving since.
As we reported yesterday, a pretty basic technical analysis of the price action on Bitcoin hints that the $7,100-mark represents the low-end of what could be considered to be an above-the-trend-line breakout based on peaks seen through 2018. Thus, the fact it is finding resistance there is one of those self-fulfilling prophecies that technical trading tends to throw up.
In an otherwise nervous market, though, it appears to be a resistance point that has some traction at the moment as Fundamentals-based investors sit and wait to see what regulators have in store.
Using the same technical markers that are giving us the sense of resistance, a serious reversal in sentiment towards a bullish mood would only really be indicated if Bitcoin managed to break above the $8,300-ish level it hit in late July.
To be frank, the way things are have moved recently – where we’ve seen market graphs show similar steep lifts as yesterday, only to trade sideways and then see similar steep falls on the other side – that kind of number seems a way off yet.
Here’s last week’s ‘short squeeze’ , for example – with it’s ‘Bart Simpson’ silhouette.
Of course, the hive-mind of the market often confounds isolated opinions, which is what makes them so fascinating… So this mini-recovery will continue to be compulsive viewing for those with skin in the game.