Bitcoin price has been declining all day. The failure to continue higher turns our attention back down in the chart.
Time of analysis: 13h30 UTC
From the analysis pages of xbt.social, earlier today:
Price is going to ground after failing to get above the Fib line resistance drawn on the 4hr chart.
We now have confirmation that there is still a corrective price pattern at play, and the next challenge is to determine if decline will be halted at the recent support floor visible lower in the chart (bright blue), or if the chart is setting up for a large declining wave to the support floor at $320 (Bitstamp) and 2100 CNY.
Price remains below the descending 4hr 200MA, and continuing decline will soon see valid xbt.social sell signals form across timeframes. A massive upward reverse divergence is evident in RSI (annotated in magenta) which should generate a strong downward price reaction.
Unfortunately, yesterday’s top reversal happened too quickly for us to get valid signaling to position short, yet the upside price wave was comparatively small in relation to previous corrections.
Bitcoin price failed to achieve terminal velocity for a rally, and is now returning to support at $365 and 2450 CNY. According to the smaller timeframe indicators an upward correction should unfold before price reaches support. So, for now, all bets are off until we see the sell signals start compounding.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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