The futures market at
https://796.com/ has a $252 dollar high to day(now its $256.89) . Currently futures are trading 251. Monitoring this gives an indication that the $260 dollar high will soon be tested maybe even tomorrow or certainly by Saturday.
What happens then???
Crystal Ball 101 says
Well traditionally that high is resistance and a sell off /pull back should occur.
Some excellent insight and rules are stated here
http://stockcharts.com/school/doku.php?id=chart_school:trading_strategies:john_murphy_s_ten_laWhat should we be looking for to indicate price direction in the short term?
Look at item 10 from the link above.
Volume accompanied by an increasing price is important
Where are we now?
Volumes over the last few days apart from 2 days chbtc "aberration' are running at approx 100,000 bitcoins traded daily. with a 60% China 40% BIG3 split.
Today increased price is accompanied with increased volume , 73k traded by the big 3 and 130k traded in China
Total 203k with 37% v 63%
http://btckan.com/priceThe increase in volume and price indicates more upward pressure on prices..Therefore $260 should be tested very very soon after which
Option 1 Price will pullback to one of the former resistance levels ..either approx $230 or $200 .( If it breaks below 200 then its 150 or $100..both of those are worst scenarios and UNLIKEY)
Option 2 Price and volume will continue to push ahead and achieve new highs.(my favored view based on recent data) The amount can be estimated /guesstimated by monitoring the daily volumes/values and the volume on the futures market but no concrete value can be given..only a range within a top and bottom trend channel..see item 5 in the John Murphy link.
Overall the majority of indicators are positive for Coin holders. (Adverse action by Government is the major danger)
