A Christmas Pump
'Twas three nights before Christmas, and all through the charts, not a bull was stirring. Not even a mouse. The orders were placed with oh so much care. Hoping in the morning, that the Bitcoin bulls would be there.
Now that my little Christmas Bitcoin poem is over, let's take a look at what happened in the markets today.
The day started around $7150 and saw a massive pump that put the price over $7600 (a roughly 6% increase in price). But, this does not mean we are out of the bear market just yet. In fact, we're really not even close. Although, this little pump is a good sign and was expected by quite a few people (I was not one of those people).
Let's take a look at the charts and see what they are telling us, shall we?
As you can see based on this daily chart, we are still very much within the down trend lines. We are also well below the Ichimoku cloud. The plotted buys and sells on this chart represent the Kumo cloud breaks and edge to edge setups. We are also below the 100 day moving average (orange line) which could act as some resistance in the $7775 region.
If you take a look at the Stochs RSI, you can see it is pretty much maxed out on the daily chart. Within this trend, that max on the Stochs typically signaled some strong reversals.
Another thing to note is is the volumes. Despite the $500 increase in price, volumes are still decreasing overall. This is reflected in the volume and in the Waddah Attar Explosion metric (WAE is at the bottom).
Right now, I am playing a very low risk short. I am expecting this to have a down turn here soon. However, you can never be sure when it comes to Bitcoin. This is not financial advice, just my experience.
Here we are looking at the 12 hour. Compared to the daily, the 12 hour shows more of a falling wedge trend line. During this bear trend, the 12 hour has seemed to be a lot more accurate when trying to call bottoms, in my opinion.
Here we are still slightly below the Ichimoku. If we do break the bottom of it, it could be another bullish signal to watch out for. We did have a candle wick touch it and get rejected. If we have a candle break it, that could signal another jump up in price.
We are also still under the 200 day moving average. Like the 100 on the daily, this could serve as a possible area of resistance.
As with the daily, volumes and Waddah are still decreasing overall.
Normally I'd cover some smaller time frame charts. But, there isn't too much to be said about them. The current market situation is very volatile so it's important to keep a level head and make smart trades. Don't get too emotional and never risk what you cannot afford to lose.
Where do you think we're headed in the next couple days? Leave a comment and join us on Telegram!
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