Why Did Bitcoin Spike? Crypto Trading Chart Analysis

is the search we've seen in crypto currencies over the last few days the start of a real recovery or just another false dawn hello I'm David Jones from currency comm and I thought we'd catch up with what's been going on with a couple of crypto currencies this week Bitcoin and aetherium if you follow these markets you'll know we've seen a relatively large move in a fairly short period of time earlier this week we've seen Bitcoin jump by about 20 percent pretty much a thousand dollars in just a couple of hours so I thought well let's take a look at this in a bit more detail because we've had a lack of volatility in these crypto currencies for what feels like months now so this is quite a surprising move is it the start of a bigger recovery or is it just another surge where we'll see the price gets sold into and sell-off over the next few weeks when it comes to the reasons behind the move as usual no one's really quite quite sure one of the reasons apparently is it was a result of an April Fool's joke where somebody was saying that the SEC the US regulator had approved finally approved bitcoin exchange traded funds this was a joke but it did go viral in some areas so some people are saying that's behind the price move the other reason is saying that shorts covering you know when you short sell a market if the market moves against you you're losing money so there's an element of people closing out shorts and people buying in to close their shorts fueling wall rises and then the other reason which is always a bit of a go-to reason whenever a market moves and no one really knows the reasons why is algorithmic buying because the likes of Bitcoin and theorem broke some key chart levels it fuels sort of robotic buying which again fuel more buying whatever the reason the moves we've seen this week have broken some key levels so from a technical point of view that is always interesting and can suggest there are more gains to come so let's get into the charts let's take a look both Bitcoin and a theory and we'll see what what actually happened over recent days then we'll take a car look at the bigger picture and see well look can we expect further gains in the weeks and the months to come let's start off by taking a look at the short-term moves earlier in the week so I've got here an hourly chart of Bitcoin against the US dollar on the currency calm platform I just zoom out a little bit you can see just how quiet trading had been for some time and then the move started April the second from about 5:00 in the morning so within a couple of hours the market had moved from below 4200 to briefly trade above 5,000 that's just in a couple of hours so we saw a level of volatility that we haven't experienced I think for for many months in these crypto currencies in this example Bitcoin it's to take a quick look at the short term chart for etherium then we'll have a look at maybe the the bigger picture and see what this actually could mean for these two crypto currencies so here's the etherium chart here's that his to start again early hours of April a second so the market was trading around about 141 and then rallied and this rally did actually carry on it moved in the first couple of hours but did actually carry on and it's on April the 3rd 9 o'clock it traded as high as 180 so it's a pretty much a $40 move so removed in excess of what more than 25% move in this particular crypto mini theorem so now for a theorem and Bitcoin let's just have a look at the bigger picture for these two so just in case anybody needed reminding we had that massive run-up in the last three or four months of 2017 this is Bitcoin so going from just about 3,000 to almost getting as high as 20,000 by the middle of December 2017 and of course the story for much of 2018 was that bubble bursting we saw the price slide trading down to lows in December just a head of 3,000 and that's 3000 level had been something of big support if we go back here to September 2017 we can see on the way up Bitcoin did dip to about 29 53,000 before moving higher so we have seen something of a base form ahead of 3000 so the question now is there have been plenty of surges on the way down is this one any different does this suggest that perhaps we are going to see more of a sustainable recovery in Bitcoin let's zoom things in so here's the the Bitcoin the daily candle what is interesting about this move we've had plenty of smaller rallies over the last few months but they've really struggled with sort of 4200 to 4400 areas so in trading terms we view this as resistance a level the market cannot get past but all of this changed on that sharp surge so this does add to the argument that maybe we're finally seeing Bitcoin starting to turn the corner we've broken through this level there has really held any rallies since late November so we've broken through an area where we had seen big selling in the past for that does suggest something of a shift in sentiment we do have something of a recovery trend going on from these December lows we've got higher lows and higher highs now not surprising given the size of the move the RSI is pretty extreme this purple line down here is a very overbought but again like I say after a big move like this in any market you would see an extreme RSI what's going to be interesting now is what happens if it sells off because you know in in normal recoveries we have highs high allows the market corrects a bit and then pushes higher so I think this will be the test for Bitcoin if it starts to sell off do we see people looking to buy into the weakness you know so I think these this whole area from sort of 4200 the old highs through to maybe four and a half thousand is one to watch if this recovery is going to be a valid one we wouldn't expect this sell-off to go below 4,000 you know we want to see what happens if we sell back off into this zone when it comes to targets on the upside if we're looking at recovery targets I think we've got to look at previous major hurdles so we had a bit of resistance mid November around about five seven and after that there's a lot of fresh air all the way up to almost $7,000 for Bitcoin so um it suddenly become I think for traders a much more interesting market to watch again let's just take a quick look at the very short term then we'll have a look at aetherium so since that surge the price has pushed a little higher and we've got various support levels left I think they're really obvious one to watch it for short-term traders is where it paused after the search earlier this week so around about four thousand six hundred and fifty four thousand six hundred four thousand six hundred fifty then we have shorter term support that's emerged around about four thousand eight hundred so at the moment after a rise like this it wouldn't be surprising to see it under pressure these are the shorter term levels to watch and on the daily chart what's gonna be interesting if we see a couple of days is its selling off do we see buyers coming back in and resuming this trend so I'm I think definitely want to keep an eye on over the next few days next few weeks but for now this break is encouraging through these old highs and it builds on the recovery that's been in place now for just over three months and here's a quick look at the dailies for etherium again we've got their recovery chugging along it has it's not been as decisive a break maybe but it has pushed through those old highs from from February so again for aetherium if it comes under pressure we want to see the buyers coming back in ahead of this 120 to 140 zone to hold this recovery trend intact but like Bitcoin a break through those those highs over the recent months is encouraging the recovery is still going so for now medium-term expecting further gains so looking at it this burst of volatility is I think positive we've broken some key levels you know particularly on that that Bitcoin chart level where where everyone was selling into whenever the market rally 4,200 over recent months we have seen that broken we haven't seen these gains sharply reversed so I think what is gonna be interesting is what happens maybe not so much over the next few hours but over the next few days and weeks if we do see these markets come under a little bit of pressure where do the buyers come back in you know we have these recoveries that have been going on since December so you would expect the buyers to come back in ahead of 4,000 for example on Bitcoin if we saw any sustained weakness and the market to hook its way back up and push up but for now those recoveries are intact and I think we're in for a much more interesting time for the rest of 2019 for crypto currencies than we've seen for quite a few months these markets do seem to have woken up once again we'll start wrapping things up there but as usual if you like the video click on the thumbs up down there if you have a different view I'm sure there are lots of different users you got a different take on why these markets have risen leave us a message in the comments down below we do read them all and to never miss out on the content we put on our YouTube channel whether it's market updates like this or all different trading strategies just make sure you're subscribe by clicking the subscribe button down there and the alarm bell notification if you push that you get notified every time we upload new content in what is becoming once again something of a fast-moving market but we'll wrap things up there so from me David Jones and currency Calm good luck with your trading

One thought on “Why Did Bitcoin Spike? Crypto Trading Chart Analysis”

Leave a Reply

Your email address will not be published. Required fields are marked *