Bitcoin Price Advancing To Recent Top

January 7, 2016

Bitcoin price has surged higher after a protracted consolidation below 2900 CNY and $440. Technical analysis of the price chart identifies some advance targets.

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Bitcoin Price Analysis

Time of analysis: 14h30 UTC

BTCC 1-Hour Chart

From the analysis pages of, earlier today:

It is difficult to ascribe reasons or causes for today’s surge. According to the most immediate risk event – the potential XT hardfork on 11 January – today’s move could be judged premature.

It is also easy to point to this week’s China stock market crash and say that investor fear, compounded by a government imposed stocks selling ban, is driving funds into bitcoin. However, we cannot be sure that this is the only or main dynamic at work. It may be that the market rallies higher only to sell off when it reaches the highs of late-2015.

A conservative Fib extension drawn from the consolidation’s initial wave up, shows that price is still short of its typical upside target at 1.618 (orange annotation). Higher overhead there is an ascending Fib line crossing through 3120 CNY straight above. This level coincides with the December high. This may represent the present advancing wave’s target.

Should advance continue we have a 2.618 Fib extension target at 3300 CNY and $475 (Bitstamp). If the market avoids a triple top reversal, then advance should eventually continue well beyond the 2.618 extension.


Bitcoin price is rallying toward a potential triple top. The best thing traders can do, in terms of risk control, is to gradually move higher a stop-loss at a reasonable distance below price in order to lock in profits should the market reverse between now and the 11th of January. Despite the looming XT risk event, the chart looks strongly bullish – the MA buy signals are more well-formed than they were at the late-November surge.

Bitfinex Depth Chart 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.
Image from Shutterstock.

Venzen Khaosan @venzen

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect. He has found a solution to the PKI mechanism. Email me to discuss.