The Bitcoin price advance topped out near $280 and 1740 CNY in typical jumpy market-high price action. Currently, a declining wave has dropped below $270 and looks to be heading lower. xbt.social technical analysis examines the most recent price wave and options for its destination.
Time of analysis: 05h41 UTC
From the analysis pages of xbt.social, earlier today:
Yesterday’s advancing wave topped out near $280 and 1740 CNY before dropping below the 1-hour 20MA in what is either a correction prior to another wave of advance or a declining wave to $250 and lower.
Those traders who had opted for a dynamic stop loss would have seen their trade close at $270 a few hours ago.
Notice that the wave had topped out to MACD and RSI regular divergence (magenta) that did not follow a preceding instance of reverse divergence (blue) – a classic sign of the final subwave of advance and subsequent reversal. Those xbt.social members who would like to better understand divergence and reverse divergence should read the “Divergence” chapter in xbt.social’s Trading 200 module.
According to the corrective pattern of the preceding waves we can now expect price to work its way lower in a three wave decline. Whether a correction or a larger decline are in force, we should see price retesting the 1-day chart’s 100MA 10% envelope near $262 in the coming hours or days.
xbt.social member discussion:
You’ve gotta know when to hold ’em, know when to fold ’em; know when to walk away, know when to run. – Kenny Rogers (The Gambler)
Bitcoin price has made a high in 5 waves of price action. The question is whether it will go on to make another high to $300 (and unfold the unconventional “Bitcoin 7th wave”) or whether consolidation will pull price below $250. The latter scenario still fits the chart, but market jitters around the events in Greece seem to fueling advance. Today’s price correction should shed some light on the path of price going forward: remaining above the 1-hour chart’s 200MA will imply additional highs.
Bitfinex orderbook depth and Buy/Sell Volume:
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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.
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Last modified: July 8, 2015 09:13 UTC