Bitcoin price trend remains up. Advance should retake $630 in the coming days, but a correction may precede a push higher.
Time of analysis: 14h00 UTC Wednesday
From the analysis pages of xbt.social, earlier today:
Price continues pushing higher above its 200-period moving average in the 4hour candle chart (red).
The chart is primarily bullish since we see the stochastics rising from oversold (magenta circle, top-right), but an ambiguous indication warns of potential downside as they’re flashing a red divergence dot. This represents a downside risk that traders should be prepared for: price may correct down to the 200MA near $587 before resuming advance.
If price can push above $630 (Bitstamp) then the move will cause 4hr MACD to simultaneously advance above its signal line and above zero (orange arrow). The move will then pull 1day MACD into advance, as well, and we will be on course for our original target a $680 and perhaps higher.
For now expect ongoing bitcoin price advance with a potential quick correction to $600 or $587 before advance resumes. If price establishes below $600 then traders should close long positions since there may then be initial downside to $570.
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.