Bitcoin price achieved $450 (Bitstamp) and 2900 CNY (BTCC) overnight. Since then price has entered a pullback that appears incomplete at the time of writing.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
A strange advance that is not yet surging above the long-term resistance it has just broken (grey trendline). The expectation was that the slow push higher would turn parabolic on the successful push through resistance at $430 (Bitstamp).
In the 4-hour timeframe, RSI is reverse diverging to the December high and the advance must now push through a supply level that has been in effect since November of last year.
Although the slow advance since March strongly resembles the gradual advance we see at the bottom left of the chart, there is not yet any convincing sign that the current advance is not merely another upside correction.
Breaking through the remaining resistance layer (red) will free price to advance beyond $500. The process of getting through resistance could be painful and involve several retracements before the market achieves a clear breach.
Bitcoin price successfully reached $450 in the Bitstamp chart. The high was accompanied by RSI reverse divergence in the 4-hour and 1-day charts from which price is presently pulling back. The fact that price did not gain momentum on the recent breach of long-term resistance is a concern. Additionally, advancing on low volume does not inspire confidence in the present move. $450 may be as far as this move goes, unless more buyers participate and advance price toward $500 with more intention.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.