So that’s it — the overlong and overdue flat range was finally broken today, but with a jolt. As the order books continued to go thin, and volatility remained lower as ever, somebody turned butter finger and shorted a massive chunk. This led to a series of speculative short positions which resulted in the invalidation of our psychological support, the 600 fiat mark.
The scenario was aptly speculated by Samuel Rae, as can be seen in his last week’s analysis. We will stick to what he said to better understand this “short-term cascade effect”. But before that let’s have a look at the levels we have drawn in this intraday 4H BitStamp chart.
As you can see, the recent pullback has prompted us to revise our range, in which 593-594 fiat (overlaid in blood red) serves as our in-term support and 600 fiat as in-term resistance (in blue). This is once again a tight range, and we will again rely on scalp trading positions to get whatever profit we can get from the market.
The cascade effect has put us on back-foot — we are expecting Bitcoin