Now is When Things Get Interesting with the Price of Bitcoin

The run over the last month has been wild, but during it there never really was a huge volatile candle like what we saw today.

It is this candle after a run up that makes you stand up and pay attention.

Signs of things to come or just a necessary flash sale?

There are a few things on the table here on why this big red candle that has rallied off the low was necessary and even a good thing.

The Futures Gap Fill

There was a big gap on the Bitcoin futures at 29,700 that more than got filled, which is good because there is another big gap down at 23,800 and a smaller one even below that.

Not all gaps get filled, this we know - but some do! The fact price filled one of the three since the explosive price move began is a good thing, because again, some gaps will get filled in the end.

Touch and go on the 10 day

You all know I love the 10 day moving average and the price spike down touch through it briefly before rallying off the lows.

I've said it for a while, as long as the price remains above the 10 day on a closing basis then the action is as bullish as it can be.

What about a potential top?

This is the other side of the coin. Have the bulls exhausted their hunger for now? Is there further profit taking? Will this be the new high for a while?

All these are questions that will be answered over the next couple weeks.

I can say this. I will be on high alert to see how it plays out because the last time we saw a move like this followed by extreme volatility it didn't work out so well. I don't think there is a high likelihood history repeats on this, but anything can happen.

The high put in yesterday will be a focus of mine followed by whatever near-term low is created. Let the trading commence!

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