Updated: Jan 7
Bitcoin has gained 173% since December 2018 lows and it might look like the crypto emperor is back for vengeance.
Looks like Bitcoin is making a new attempt on it's journey "To the moon" .
Price broke above the 8000 level last week before falling back below 7000. The bulls are still in the game and price has almost made a comeback to last weeks high by the time this article was written.
As always the internet turns into the wild west among the crypto traders when Bitcoin makes moves like this. Forums and chat rooms usually turn into a war zone and it's no difference this time. A quick google search on the subject will keep you occupied for a whole week just reading the opinions about what makes these moves.
When doing the research for this article I stumbled over countless "analysis" and posts about this subject. It seems like these moves were made by the Rothschild family who runs the world with assistance from their wingmen in the CIA and the FED. On top of this there was also a flash crash involved Thursday morning.
If these statements are true or false is not for me to say, I'm just a humble trader who likes to look at price levels on financial instruments. So that's what I will do.
Zooming in on the daily chart for a closer look on what's going on with these price moves we can see price got rejected on the supply zone. It's highly likely that sell orders will be placed here since price now reaches a level where major selloff has occurred before. Traders will take their profits and place sell and short orders on levels like this.
Scaling down to the 1h chart gives us a better view of how price has moved. Price makes a double top and it looks like the bulls are done for now. It would be a wise decision to place a stop-loss below the new higher lows for any trader who wants to protect their profits. I can imagine that there would have been a ton of sell orders below the new demand zone.
When price is stalling it's also likely that more traders will close their positions to protect their profits. Closing a long position is done by selling.... causing price to move lower. When buyers are running out and the sellers are in majority, price will keep falling.
In this case it looks like there where no buyers to carry the price higher causing price to fall below a zone where massive stop-loss orders are placed. When price falls to our next demand zone the bulls are willing to get back in the game.
But then again..... might been the Rothschild family and their wingmen. How could I know. I don't have any insight to their trading platforms....