Bitcoin price pushed higher in a small advancing wave today, Although the price wave resembles the initial stages of advance, there is not yet high confidence that the push higher will continue.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
The rounded price wave that formed during the past two days (blue rectangle) had dipped lower and the market advanced price from the top of the support zone (at $650, Bitstamp), as illustrated in yesterday’s analysis post.
Today’s upside wave has been conflicted – lots of buying and selling (in low volume) – and with no meaningful progress. What is interesting about the current price wave is that it formed a rounded wave (highlighted with a blue rectangle) that resembles the “bump” we witness before a surging upside wave. Yet, the surge has not materialized.
Our expectation and trade plan remains unchanged:
Below the 1-hour 200MA there is a potential bounce level at $640, at which a base wave may complete and then advance into a larger rally. Of course, losing that $640 level could be seen as a bearish signal and then the low $600s and a potentially larger decline may develop.
For now, we expect consolidation to continue unfolding between $640 and $680. Ongoing MACD compression signifies a pending breakout, but we wait to see the signals form across timeframes and for price to then establish either above $680 or below $600 before we commit to a position.
Bitcoin price has been traded – with some strain – to the upside today. Until we see price clear the $680 (Bitstamp) level we continue expecting more of the same: consolidation.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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Last modified (UTC): July 18, 2016 12:24