A sharp rise in the price of Bitcoin seen yesterday, December 4, reached USD 7,750, however, the force was quickly lost.
What many thought would be the beginning of a deep recovery of the price of Bitcoin, was only a movement of high volatility and little force.
Yesterday Wednesday, at 1:25 p.m. UTC, BTC merchants witnessed a strong movement, capable of causing a positive return of just over 7% in just 6 minutes, momentarily touching USD 7,772 in the Bitstamp exchange, and USDT 7,750 in Binance .
Why did Bitcoin rise yesterday?
In recent days, Bitcoin initiated a bullish transition that we hope will be able to push the price back towards USD 8,450.
Before the sudden rise, the price was making smaller and lower lows, but they were never able to effectively break the support of USD 7,300.
The constant decrease in volume during this backward movement, and the previous bullish control, supported the increase in volatility of the sudden movement seen yesterday.
From the fundamental scope, the reason is not immediately clear, however, the low prices for which Bitcoin was around, could be the main cause; This also caused the feeling of extreme fear to increase , a situation that investors generally take advantage of to make large purchases thanks to the excellent prices achieved.
It is important to note that hours before the strong bullish movement, Bitcoin whales made really amazing transactions , possibly positioning themselves with large and new purchases.
The batch of large transactions on December 4 began at dawn with a 43.564 BTC; Minutes later, 57,577 BTC, equivalent to more than 400 million dollars, were also sent to an unknown wallet.
Hours later, 2 large similar transactions were cause for alert; one for 56,277 BTC, and another for 55,877 BTC.
Technical analysis of the current situation of Bitcoin. Daily Temporality:
From the graph of the price of Bitcoin vs the US Dollar with daily candles, the scenario has become totally bearish , after the recent rise will end up forming a candle known as an inverted hammer, which consists of a small body candle and a large wick , demonstrating bullish rejection, and consequently, greater likelihood of a subsequent bearish movement.
Yesterday's candle also closed using the exponential moving average of 8 and simple 18 as dynamic resistances, respecting the bearish cross that still holds in this season.
The RSI remains below level 50, which supports a bearish scenario for the following hours.
The body of the bullish candle causing the volatile rise has already been completely wrapped by a bassist.
The space left by the strong wick of rejection may be filled in the next few hours, however we could see a bearish movement capable of reaching USD 6,800 again starting from the current price.
The EMA of 8 and the SMA of 18 are making continuous crossings, product of the consolidation in which the price of Bitcoin is found.
The RSI is above 50, which could support a movement that fills the space left by the recent wick before a subsequent bearish movement.
The 1-hour candlestick chart shows a clear consolidation, and the immediate loss of strength of the volatile bullish movement seen yesterday.
The simple moving average of 200 periods is operating as resistance throughout the clear accumulation period that is going through the price; while the moving averages of 8 and 18 periods are making constant false signals of crossings. Meanwhile, the RSI is still above 50.
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