Bitcoin Price is showing signs of advance and has begun an assault on a long-term trendline that has both supported and resisted price moves since November last year. The move is expected, as has been outlined in these analysis articles during the week. This analysis…
Bitcoin Price is showing signs of advance and has begun an assault on a long-term trendline that has both supported and resisted price moves since November last year. The move is expected, as has been outlined in these analysis articles during the week.
The following analysis is quoted from the pages of xbt.social earlier today:
The 15-minute chart has price bouncing on its 200MA (red) – piercing it, yet, not declining below. The price action and conditions are reminiscent of the previous occasion when price was consolidating prior to advance. The area is outlined in magenta.
If price should start trading below the 200MA then we can expect it to decline to the lower channel trendline near $220.
A magenta line illustrates the reverse divergence evident between price and the RSI indicator. Price is not making the lower lows being made by RSI in relation to the previous wave’s swing low. This reverse divergence is a continuation signal, and we simply have to wait for the uptrend to resume its upward journey.
The extended sideways corrections being formed in the price chart are a symptom of market fear and uncertainty. Yet, price surges up eventually because the underlying driver of this advance is market psychology that wants to revert price to its mean after the traumatic decline.
During one of the upcoming advancing waves, many market participants are going to wake up and look at the chart and say “Hey, Bitcoin is going up!” and with the fear forgotten, they are going to pile into the advance. Fear becomes Hope.
The current wave has a primary target of $260 where the chart technicals will be examined for the likely next move.
Is that selling or profit-taking at Bitfinex?
xbt.social members peer into the crystal ball:
What do readers think? Please comment below.
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The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Last modified: January 25, 2020 10:08 PM UTC