Triple top on BTCe and head & shoulders on Bitstamp/huobi/btcchiPreviously I have covered on the triple top on the 30 minute trend which suggest a further decline down to $620.
Now that the decline have been completed, coupled with a rally yesterday. A closer look into a 2 hour trend does suggest another triple top on BTCe, whereas head + shoulders on Huobi/BTCChina/Bitstamp.
Both formation will most likely lead to another further decline in price down to the 560s.
Head+Shoulders:
Huobi
Pump'n'Dump Cycle complete. My analysis.One thing I love about Bitcoin is these massive pump and dumps. When they complete I find them a beautiful thing to study and analyse. I think they are one of the most important things you can try to identify if your day trading because they happen so frequently.
Firstly, this was quite a large operation. I counted roughly 50k coins injected initially and 50k dumped in a period of roughly 2.5 days. These large entry and exit points were coordinated across all major exchanges at the same time so I presume the bot was probably operated by somebody on behalf of a group due to the size of the investment.
Pump#1 started as the price touched the trend line and this should have been the initial warning signal. As we have seen massive price rises recently as well as strong bullish outlook, this was the perfect cover.
Momentum was easy to maintain up to the weekend where the second pump was initiated. Pump #2 was a slower meaning less investment was required. This again should have been a signal of Whales looking to take profit especially as there had been no new developments to substantiate a price rise.
Pump #3 was merely maximising prise into a zone believed to show resistance ($480). This was a perfect time to sell as many would be looking to short this area.
Sell off retracted approx 50% from pump#1 so it wouldn't surprise me to see more sell off but I don't believe the bullish sentiment to be broken. I expect the price to go sideways for a short while but continue upwards in the short term at least.
The only thing that will change my opinion on the price of BTC rising is negative news from China although we would have to see something pretty special like an outright ban to have effect considering all the FUD experienced so far.
I hope this helps some analyse some of these price movements and look out for the warning signals.
Well played Whale X, Looking forward to the next one!
