Bitcoin is currently trading at $421 in a bullish market after an intraday high of $425 and a low of $415. In our last technical analysis we indicated that the Bitcoin market was exhibiting a few prominent patterns which shouldn’t go unnoticed. One pattern we indicated was the head and shoulders formation which signaled an upcoming price increase. This recent price hike from the $380 levels to the current $420 validated the technical indicator:
Chart from bitcoinwisdom.com
An interesting observation worth taking note of is the relation between the amount of active users on Bitcoin’s most popular subreddit r/Bitcoin and Bitcoin’s price. This chart from cryptocompare showcases a potential relationship:
Chart from cryptocompare.com
We can see a subtle pattern where the amount of active reddit users rises as bitcoin’s price climbs. Furthermore, we can see on Feb 09 that the amount of active user’s reached a peak last seen Jan 28th. This peak seemed to be a foreshadowing for the rally which began the same day. The amount of active users on a subreddit alone should not be the basis to make a decision on a trade, however it is important to take that data into account as there is a relationship with the market.
Read More:
http://themerkle.com/technicalanalysis/bitcoin-technical-analysis-for-21916/
