If you take a comprehensive look at the Bitcoin market at the moment, you will be greeted by uncertainty and indecisiveness. The reason for this is that there has been solid two-way business in the past 24 hours. Despite that, it is not complete doom and gloom for the Bitcoin market, after all, this is not the first time we’ve experienced this. With that said, the next move will mainly be determined by today’s UTC.
After soaring so high mid-April, the most popular cryptocurrency on the market could only attract low bids in the region of $10.4K around 13:45 UTC on Wednesday. The value, however, rose to $10.8K at about UTC.
Lots of people didn’t foresee the drop given the fact that Tuesday had figures reaching $10,956. Mind you, the drop put an end to the 15-day high of $10,834, with the value plummeting down to $10,586 (that’s about a $0.30% drop on the day).
On a more technical term, Bitcoin made a spinning-top candle on Wednesday. The spinning top candle indicates indecisiveness in the market, and that means you can’t tell if the bulls are in ascendancy or it’s the bears.
Whereas inexperienced traders might decide to take a gamble and flex their muscles in the market, the more experienced traders literally wait out the storm. You often find experienced traders wait until they can get a strong directional move before the make their own moves. As things stand, BTC has not shown any strong directional movement that will indicate favorable changes. Bitcoin is currently consolidating around $10,600 on Bitstamp.
For those who were hoping the triangle breakout at the start of the week by BTC will be the start of something great will be dampened by the spinning-top candle the top cryptocurrency created on Wednesday. In fact, the spinning-top candle has brought lots of attention to today’s UTC close pivotal.
A close above the candle’s high of around $10,834 could mean that the recent low of $9,320 will continue to play. On the other hand, the UTC close above the lower high of $10,956 made on Aug 20, will be a proper indicator of the bullish revival. Should the bullish close be higher than $10,956, then attaining $12,000 won’t be too far off.
Mind you, if the close is below $10,378, it will not only mean that that the recent low of $9,320 has come to an end, it would also show that the bears are in the ascendancy, leading to a sell-off at $9,755.
Observers and analysts feel that a bullish daily close is the most likely event citing the fact that the moving average convergence (MACD) histogram is already pointing towards an above-50 reading which favorable bullish condition.
But, making such hasty conclusions may not be advised. There can be unexpected changes along the way, leading to a potential bearish close. The appearance of a spinning-top suggests that there is bullish exhaustion, and as such, a bearish close might not be too far off.
Contending with rejection isn’t something BTC is used to, but it had to face it around $10,800 twice under 48 hours. However, it later found acceptance below the bullish trendline.
Even with the fact that there was a falling channel breakout yesterday, the bullish move failed to rise to the occasion; a clear indication of bullish exhaustion. Additionally, the 50-hour moving average (moving average) is starting to shed bullish bias, which means a pullback to 100-hour MA at $10,247 can be expected sooner rather than later.