Many crypto investors were taken by surprise by the sudden rise in the price of bitcoin today. I suppose the surprise has come from the fact that the mood has been extremely bearish over the last few weeks. As for yours truly, a close friend in Canada sent me a chart showing the dramatic rise. I immediately went in search of an answer. I did what I would normally in spotting a potential rally or fall, check the 4-hour chart. I saw the big rally particularly the volume that accompanied the price surge. I could not quite discern the time of the start so went to the 1-hour chart. It seemed the rally started at 7 am UTC (9 am CAT (Central African Time)). The candle at that time frame indicated a bullish engulfing pattern. Two hours after that there was enough volume and drive from the bulls to push the price upwards.
Looking at the 1-day chart now, one can see this sentiment reflected. We must bear in mind that the overall sentiment is still bearish by just looking at the chart. All the signals are still below the cloud. Many are wondering whether this a real rally or just some of the bulls pushing their luck?
Or could it be the struggles in Italy or the Ethereum hard fork? All these reasons don’t seem logical but as we know the crypto markets are very news fickle. Truth be told, I don’t think anyone really knows. I leave you with my usual saying when it comes to crypto prices – your guess is as good as mine.
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