Bitcoin Price Analysis: Is Volume Preceding Price?

Price as of writing is US$249.90

Last week it was stated:

As the above chart shows, the price has broke above the 50 day EMA, which could set up for a move to test big resistance in the US$255-$260 range.

The Price has not only broken through the 50 day EMA, but has now moved above the 100 day EMA as well.  A test of the 200 day at ~US$256 should occur. However, a lot of energy has been spent and the RSI is getting near an oversold level. It’s looking more like it will reject a move above the key US$255-$260 level, at least initially. Below is a daily chart of the bitcoin price.

As both volume and OBV are showing, there has been rising volume in recent months and as was pointed out in last weeks article, one of the big reasons for this has been wash trading. 

So far this has been a self fulfilling prophecy of bullishness as price has lifted with both volume and the OBV. The major problem however, is that while price has risen it has been rather modest on what is much higher than average volume for bitcoin compared to normal levels. 


Read more ... source: TheBitcoinNews