Bitcoin [BTC] price made a bizarre flash move early on 11th October 2019. Price exhibited a huge rise reaching a high of $8820 followed by an immediate drop to below $8450. This occurred almost within an hour span between 4: 30 Hours to 5: 30 Hours UTC.
The price of Bitcoin [BTC] at 11: 00 hours UTC on 11th October 2019 is $8355. It is trading 1.5% lower on a daily scale. The 200-Day Moving Average at $8650, once again acted as resistance and rejected a break-out almost instantly.
Crypto-analyst and trader Josh Rager tweeted,
$: crypto community in disbelief right now
The resistance at in the $8800-$8900 band is considerable and seems large sell orders were placed at that price. The rise in the buying volume was considerable, however, sell volume was even greater.
Today’s move formed a higher high and is about to form a higher-low on the 4-hour chart. However, the long shadow of the flash drop earlier this morning is showing strong bearish action.
Nevertheless, Sawcruteez, a crypto-trader, and analyst, suggested the formation of the bullish Wyk-off accumulation pattern. However, the pattern has broken down below its support at $8450. If it forms a new low below $8200. It will probably invalidate the last break-out region of the pattern.
Moreover, the large sell-off above $8700 signifies that large players still aren’t ready to buy yet as well. The long shadow of the candle suggests a bearish move and could find support near $8300.
However, according to Josh Rager, if it fails to hold above $8300 support area, Bitcoin could form a lower low. The recent low of Bitcoin [BTC] was around $7715.
Do you think another bullish pattern is forming or agree with the bearish view? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com