Bitcoin price continues trading into a narrowing range and the market seems to have foregone decline in favor of consolidation. The consolidation floor and expectations going forward are discussed below.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Yesterday’s analysis stated that, barring a bullish resurgence, the 1-hour chart stochastics imply bearish bias. The hope was expressed that, if decline sets in, it will be contained above $500.
Well, today’s chart saw price decline according to the stochastic indication and, additionally, it appears that the correction since the June high has reached a consolidation floor at Bitstamp $600 (blue horizontal line). Confirmation of this process can be found in the volume decrease while price volatility died down.
Although the moving averages suggest ongoing decline, a push above the red 200MA, today, will indicate that a consolidation floor has formed at $600 and that MACD (panel above price) will continue compressing and eventually see price break to the upside in another wave of advance.
The role and potential targets of a new advancing wave will be discussed when we see it launch in the chart, but for now it appears the accumulation for advance, within the next week or so, is underway. A decline below $600 (Bitstamp) will, of course, invalidate the present view of consolidation.
The bitcoin price chart has passed through a bearish chart condition and into a state of consolidation. This is the current technical picture in the chart and traders should wait for confirmation of advance – MACD breaking above its zero line, etc. – rather than trade the anticipation of a move higher.
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Bitcoin price charts from TradingView.
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