Bitcoin price has corrected the past week’s spectacular advance in five waves to the downside. The decline may be over or it may still reach lower in the days ahead. Let’s see what clues there are in the chart.
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Bitcoin Price Analysis
Time of analysis: 14h45 UTC
Bitstamp 15-Minute Chart
From the analysis pages of xbt.social, earlier today:
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The 15-minute chart, above, shows a close up of price action during the past five days, and the current ongoing correction of the advance.
The price correction retraced to the level of the 4-hour chart’s 800-period moving average (800MA) at $240 (Bitstamp). This is a 50% retracement of the entire advance and a bounce from significant resistance-turned-support, since the 4-hour 800MA had rejected attempts to advance above it for the past six months.
Price is now holding above this important support level and if this is a larger wave of advance then conditions are suitable for the next leg of advance to begin. However, there is no blatant buy signal in the chart to give us confidence that this is the moment of the start of advance. Price may still zigzag sideways at present levels before continuing higher.
Establishing trade above the 800MA is a significant development and the market will not want to give it up so easily. It may be thoroughly tested in the coming days and there is plausible risk that support could give way to a sell-off – in which case we face the prospect of deeper decline.
If further decline is still in store, then price will confirm such decline by breaking below the 4-hour 800MA near $240 (Bitstamp) and 1510 CNY (BTC-China). It was illustrated in yesterday’s analysis that the 1-day 200MA had rejected advance at yesterday’s high and that additional decline had typically followed such junctures in the past. We are, therefore, in the contentious area between the 1-day 200MA (to the upside) and the 4-hour 800MA just below.
Not everything that counts can be counted, and not everything that can be counted counts. – Albert Einstein
CoinCompetition
ryo holds the lead with a hefty 104% profit followed by KevinHiebert and the hackedprogrammer in 2nd and 3rd places.
Cautious of decline, ryo has retreated to an all USD cash position, The hackedprogrammer does the same but opts for BTC, thereby indicating his outlook for imminent advance.
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Summary
There is no easy way to predict how long the current Bitcoin price correction will last and which way price will swing once the market chooses a direction. We can only wait for more clues and signals. The depth charts below give some sense of the longer term bullish sentiment and shorter term bearish outlook in the market.
Bitfinex depthchart and Buy/Sell Volume shows that a player/consortium expects decline and plans to buy around 20,000 bitcoins between $250 and $230:
Bitstamp depthchart and Buy/Sell Volume:
Click here for the CCN interactive price chart.
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Disclaimer
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.
Bitcoin price charts from TradingView.