So many signs that Bitcoin has hit the top. Let's take a look...starting with the daily chart above.
1) Volumes at the peak
I talk about volumes a lot. Thankfully, we don't see too many dark pools screwing with the volume counts so what we see is pretty accurate.
One of the things that stands out is that the huge bull volume candle resulted in a bearish looking reversal candle at the top of the daily with the upper wick about 3x the size of the body showing weakness.
In addition, we saw bear volume show up and outperform the bull volume. This huge amount of BTC's being sold shows that prices are rejecting at this level which didn't meet up with the next high above $12,000.
2) Trend Line
Bitcoin rallied and rejected from the trend line set by the last two peaks; downward trend line is still in effect...nuff said.
3) Daily Technicals
Daily technicals have all rolled over and are showing bearish pressure. MACD finally caught up to the rest and had a bearish crossover.
4) Moving Averages
Bitcoin saw a break above EMA resistance, but failed to hold. BTC then was unable to establish EMA levels as support and now we are back to bearish with no signs of trend reversal since there was no crossover.
5) Hourly Volumes
Again, let's look at volumes. The biggest bull volume bar was nowhere near the peak. In addition, the bear volume bar was larger than the biggest bull bar and was at the peak signaling a rise in selling pressure at this level.
Everyone expect price overcome down trend band. When price overcome down trend band then a lot of people wanna take on rising trend again.
Yea, we will see. I don't see enough new money coming in especially in this market to overcome the FUD and selloff trends now.
Some time ago I read a post mentioning that more bulls will be back to the match once a) pay checks are handed out for 2017 bonus and b) Chinese New Year is over.
I guess CNY is over, so we could try to buckle up for a ride.
Interesting...haven't heard that. Wonder why Chinese new year would matter? I don't think bonus checks are going to be enough to pump enough $$ into the mix to reverse this trend.
The author referred to it as Christmas, New Year and the biggest party of the year. Thus most Chinese people around the world would be on vacation, receiving and handing over gifts.
CNY is also supposed to have an impact on other Asian countries and would therefore "dry out" the markets.
If this is true in regards of Cryptocurrency, we will soon find out I suppose.