Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization has enjoyed a staggering price increase in excess of 150,000 percent since it was first listed on exchanges back in July 2010.
Since then, the cryptocurrency has also experienced multiple bull runs, bear runs (the longest of which consumed much of 2014 and 2015) and stronger media attention year on year.
Right now we are getting some disparity on different exchanges. On Bitfinex for example, we have BTC printing around $6,900, but on Gemini and Coinbase we are printing around $6,400. If this disparity holds, this will be very good and will drive prices higher. Bots (and people) will begin buying cheap BTC from USD on Coinbase and GDAX and selling it higher to profit, or just holding knowing they can sell it higher.
A bot making a $500 tick every time they buy and sell almost instantly. Arbitrage bots have been dormant for some time, but this disparity will allow them to come and trade. Ultimately, if we see this price disparity continue, we will see prices go higher substantially.
From a technical perspective, the relationship BTC has with traditional charting patterns is occasionally counter-intuitive to what one would normally expect. Bitcoin’s relationship with the 200-day moving average (DMA) and descending triangle pattern has been significant. When the patterns and indicators are combined on bitcoin’s weekly chart they show a consistent counter-play to their traditional bearish norms. As can be seen, the price generally breaks bullish from the formation instead of continuing to lower supports as it normally should.
The weekly chart also looks bullish. Descending triangles are measured by connecting a series of lower highs, usually angled at 45 degrees and breaking down left to right thus creating a primary trendline. The secondary baseline connects two or more of the lowest lows in a series to form the horizontal ‘floor’.
When the patterns and indicators are combined on bitcoin’s weekly chart they show a consistent counter-play to their traditional bearish norms. As can be seen, the price generally breaks bullish from the formation instead of continuing to lower supports as it normally should.
returning is great news. It will bring in more action, more buyers and attract people that have been on the sidelines. Also, due to the rough patch in September, more and more traders will want to trade while the Markets have volume pouring.
Source: Trading View