Since yesterday’s update, bitcoin price advanced strongly and is now past the $400 psych level. The CNY exchanges continue leading the market higher and the upside potential looks promising – even including inevitable corrections.
Time of analysis: 15h53 UTC
From the analysis pages of xbt.social, earlier today:
OKCoin 3Mth is approaching $440 and BTCC is approaching 2600 CNY, and price has been respecting Fib extension levels – both recent and some dating back a few weeks. We can, therefore, expect the Fib levels and lines to continue exerting influence.
Price is currently negotiating a 3.618 Fib extension. Above it there is a Fib line coinciding with 2640 CNY (approx $400 Bitstamp) and another Fib extension level at 2700 CNY.
Traders should consider taking 50% profit as price pushes toward these levels and then anticipate price swings – or strong profit taking – causing the market to look for support around $330-$350 (Bitstamp) and 2300 CNY (BTCC).
I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have. – Paul Tudor Jones
Price continues pushing higher despite momentum indicators saying the advance is way overbought. During a bitcoin price advance, the trader needs to be aggressive to the upside. Build a position after each significant correction and protect your profits with a nearby stop-loss, whether trailing or manually adjusted upward just below the most recent support.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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Last modified (UTC): November 3, 2015 20:01