Bitcoin – Classic Peak Behavior before a Price Fall?

Bitcoin price Spiked almost to the 8,000 mark for a short period of time on Wednesday’s New York Trading session, moving immediately back to the heavily traded range between 7,000 and 7,500.

This kind of phenomenon can be seen where a certain market is reaching to its last price peak before a significant and healthy price correction. Such activity is followed by increasingly volatile price action, including wide open price spreads between the buyers and the sellers.

With all that said, I wonder whether history will repeat again.

Today, the economic highlight will come out from the US, where the jobless claims numbers will be published. This event will not have a high impact on the Bitcoin price, as this market has gained its standalone psychology, that is currently disconnected from any reasonable logic.

Bitcoin is highly affected by the recent news that CME will launch Bitcoin futures and the announcement yesterday that the next bitcoin fork was canceled.

Bitcoin is trading at 7235, -2.94%, as of 10:00 GMT.

It is nice to know that:

Initial Jobless Claims give a good indication via their trend on the state of a nation’s economy. When the results are looked at on a weekly basis the results can be too unpredictable and appear volatile. However, when the number of new jobless filings have been made and examined over a period, for example including a four-week average, the outcome reflects the conditions for employment quite well. Investors look at the Initial Jobless Claims carefully and the data is an important ongoing factor for central banks when taking into consideration their monetary policy and interest rate mandates. The data results from the Initial Jobless Claims are a major component of the Leading Indicators data, which are indexed to provide investors with a good barometer of overall economic conditions. Clearly, improving Initial Jobless Claims data – meaning a decrease in the number of filings is considered a good statistical result by investors.

Yaron Mazor is a senior analyst at SuperTraderTV.

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