Bitcoin Price: The Upward March

The market has worked its way through a couple of days of price range compression but prices finally look to be on the upside. It still is fairly oversold from the last few days but this recent upswing is a very significant one; some impulsive short trade positions could test this recent rally to $234. Let’s look at the 5 minute mark:

There is not much in this chart other than the obvious: the flatline we talked about yesterday and the recent rally point from earlier today. All of these buy orders have pushed the price to its current point and we are in the territory of “first of missing out” or FOMO where people know that there are short positions to be had and will buy out of worry that they might miss a good opportunity. The curious thing about FOMO market pressure is that it can dissipate relatively quickly since trading action is very aggressive but slightly out of touch with the market.

Aggressive trading and resistance

While the FOMO momentum will likely evaporate sooner rather than later, it can serve to test the $240 price resistance and the current market conditions look like this is the case. Short opportunities are on the horizon but I want to caution anyone about small trades before the established resistance has been tested.

New resistance and rallies

I would recommend carefully watching around $237 to $240 for potential price rally points in the near-term with the chance for ascent and support at $224. There is a new baseline price and this setup could be fairly good if the price does not pull down closer to $200 for good short positions; though we could still test for $200 if this bullish momentum slows down.I suspect that the upward FOMO movement and slight bullish rally will slowdown and eventually stop with a new settlement around $225 to $235.

Words among us

Today’s word is adverse selection, and it is a  two-fold definition too!

“1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance.
2. A situation where sellers have information that buyers don’t (or vice versa) about some aspect of product quality.”

Since we are in short trade season, it is pretty appropriate that the word today would mention risk. If you are feeling that your risk threshold is solid enough, you could try for some shorted action at $235 with a slower close at $228. Happy trading!

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