Markets over this weekend were fairly uninteresting with a small price range around the low $220’s and a high of $228. I expect that we will see similar market action for the beginning of the week, or in this case small transactional volume and relatively narrow price shifts. Let’s take a look at the 15 minute chart:
The market has almost flatlined since Friday and this is especially true when considering the week before had some movements around $10 or more. There were two spikes in buy orders that happened on April 17th and 19th and there was a very, very slight price raise around the 19th but this has been lost in the flatline. There is still substantially strong resistance around the $230 to $240 level.
Fibonacci and downwards
While we have not talked about Fibonacci yet but we will get there in an upcoming introduction to trading, here is a little background for today:
“Fibonacci extensions are simply ratio-derived extensions beyond the standard 100% Fibonacci retracement level. They are popular as forecasting tools, and they are often used in combination with other technical chart patterns.”
That said, some of the Fibonacci levels from today would suggest that our sideways trend may have some slight downward pressure that we should carefully watch. On Friday we mentioned some price momentum but it has essentialled evaporated in the wake of this sideways flatline; the market has been fairly overbought and longer term indicators reflect this.
Turning the tide slowly
Even though the market is somewhat oversold, the resistance I mentioned could lead to a price reversal in the short-term around the $240 level. If price can move to this level, it will not last very long and it could provide some solid short sell opportunities. I just acquired some more coins at one of these lower levels and my target right now is around $240 for some potential short positions; be careful since this reversal might not even happen and if it does it could evaporate very swiftly. Should price not hit $230 and the downward pressure is to remain, the market could test out a new low around $220.
Word washing and otherwise
Today’s word is wash trading:
“The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading can also make a stock’s volume appear to have a lot of activity resulting from the repeated buying and selling done by an individual or firm when, in fact, the shares have never changed owners.”
This is also applicable to bitcoin market trading as well, since there are multiple exchanges that may report different transactional volumes within different time periods. Happy trading!