Today has been a good day for Bitcoin traders as China is leading the latest pump of over $20 in the last 12 hours resulting in the current price of $387 on Bitstamp.
In our last bitcoin technical analysis, Traderman ended the report with the following sentence:
The market has started to print lower highs since the end of January. This indicates that pressure is building in the market as price is compressed against the support area at $363. These sort of formations usually resolve themselves with a very violent break!
Today’s market action confirmed the anticipated break, multiple technical indicators such as positive divergence discussed here and the triple bottom which formed right before the pump signaled this trend reversal. A triple bottom pattern is usually used to predict the reversal of a bearish trend, in our case the bearish trend started at the beginning of January when we hit the $350 low.
Chart from bitcoinwisdom.com
While it’s true that we can find technical indicators which coincide with today’s pump, the general opinion on reddit is contradicting. sierradreamz from r/BitcoinMarkets said:
Read More: http://themerkle.com/coins/bitcoin-technical-analysis-2516/