Bitcoin price declined an additional $30 today and is currently being supported at $357.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
Price has found support at a Fib line originating at the low of 1 June 2015.
Additionally, 4-hour RSI shows a well-defined five wave channel to today’s low. According to Elliott wave principle, the decline should now be complete, but the Bitcoin price chart regularly forms waves consisting of seven subwaves, so there is no reason to call the bottom just yet.
Note that RSI (panel immediately above price) has reverse diverged to the closing low of 11 November 2015 (magenta arrow) and that MACD (top panel) confirms this reverse divergence with a double bottom (not annotated).
The stocahstics (second from top) have spent several days at their lower extreme. The oversold indicator conditions could see a reversal from current levels. Confirmation of a move higher will occur when MACD advances above its signal line and RSI breaks out of the decline channel (blue).
If an additional low prints in the coming hours, and RSI only indicates a higher low (i.e. diverges from price) then a reversal to the upside seems inevitable. However, be cautious to trade the initial push higher, since it may turn out to merely be a correction prior to more decline.
Price has completed a third large corrective low to below $400. The longer-term 4-hour chart indicators are oversold and the corrective price pattern may be nearing completion – if not already complete. What we want to see in the chart, is a series of higher highs and higher lows, before we look to position long.
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Bitcoin price charts from TradingView.
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