Bitcoin spikes as whale reported to have covered short

According to u.today, an anonymous whale has covered a significant short position. Bitcoin's price reacted by spiking to more the $43,000. Since then, the cryptocurrency has pulled back slightly; however, it has moved into its bullish area on the daily chart (left), between the upper blue and red bands. We also note that the Bollinger bands have turned up (black ellipses), affecting pressure upwards. If this continues, the odds for an uptrend will shorten.

The hourly chart on the right shows bitcoin's short-term EMAs with good angle and separation. Moreover, its stochastic has crossed positively and may be heading into the 80+ areas (blue arrow). If so, an underlying bullish momentum will be present if it holds that position. The R3 pivot is the immediate overhead resistance (red rectangle). According to the u.today article, speculation is that "the massive short was removed with the help of insider information about market movements."

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Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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