Trading was volatile and bitcoin was about 11 percent higher near $7,680 as of 9:36 a.m.The sudden jump forced traders who had bet against the cryptocurrency to buy back into the market.
"Once bitcoin broke higher, shorts were squeezed and forced to cover," said Brian Kelly, CNBC contributor and head of BKCM, which runs a digital assets strategy for clients.Falling wedge, a bullish reversal pattern, meaning an upside break would confirm the tide has turned in favor of the bulls.
Pennant formation, a bearish continuation pattern, characterized by lower price highs and higher price lows. A downside break would indicate resumption of the sell-off from $9,050 (March 24 high).
So, there are conflicting patterns on the daily chart. That said, the failure on the part of the bears to capitalize on the recent bearish outside-day candle could be an indication of an impending rally.
BTC suffered a high volume drop from $7,189 to $6,611 on April 9 (bearish outside-day), engulfing the previous day's price action.
However, the follow-through in the next two trading days has not been encouraging for the bears, given that bitcoin moved back well above $6,611.
"Once bitcoin broke higher, shorts were squeezed and forced to cover," said Brian Kelly, CNBC contributor and head of BKCM, which runs a digital assets strategy for clients.Falling wedge, a bullish reversal pattern, meaning an upside break would confirm the tide has turned in favor of the bulls.
Pennant formation, a bearish continuation pattern, characterized by lower price highs and higher price lows. A downside break would indicate resumption of the sell-off from $9,050 (March 24 high).
So, there are conflicting patterns on the daily chart. That said, the failure on the part of the bears to capitalize on the recent bearish outside-day candle could be an indication of an impending rally.
BTC suffered a high volume drop from $7,189 to $6,611 on April 9 (bearish outside-day), engulfing the previous day's price action.
However, the follow-through in the next two trading days has not been encouraging for the bears, given that bitcoin moved back well above $6,611.
Comment:
Playing out perfectly .