Bitcoin Price Holding Ground

January 1, 2016 20:04 UTC

Bitcoin price has moved strongly on the first day of the new year, and the increased volatility may herald large price distances during 2016.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Bitcoin Price Analysis

Time of analysis: 16h00 UTC

Bitstamp 1-Hour Chart

From the analysis pages of xbt.social, earlier today:

A fifth wave of advance, from yesterday’s low, pushed higher into strong divergence. The market’s initial reaction was to sell-off from the new local high.

The 1hr chart has an apparent MA buy signal but it is not yet well-formed, so confidence in the push higher requires additional confirmation.

A bullish confirmation of advance will occur when the 1hr 20MA (green) crosses above the 1hr 200MA (red). Once this MA configuration occurs we also want to see price advance higher with conviction – to negate the price reversal pattern circled in blue.

A longer-term analysis follows in the coming days.

Summary

During price corrections the market tends to reverse price direction regularly, since the psychology of correction is irrational. An exuberant new year buying frenzy fizzled out earlier today, but the market is clearly in a bullish mood, with participants buying even as price made lower lows during the past few hours. To escape the pull of $400 and 2600 CNY, we want to see the bullish energy express itself as a series of higher highs in the chart.

After the directionless energy has expended itself a clear signal should form.

Bitfinex Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin price chart.

What do readers think? Please comment below.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.

Posted in: News
@venzen

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect. He has found a solution to the PKI mechanism. Email me to discuss.

Show comments