Bitcoin price quietly turned lower after failing to take advantage of a weak spot through resistance this weekend. At the time of writing price is declining from the recent high under a multiple timeframe sell signal.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Bitcoin price formed a lower high overnight. The inability of the market to commit to action at the critical juncture may see the opportunity pass and result in price returning to decline.
Yesterday’s analysis described two important trendlines (grey and blue) that are currently intersecting above price in the Bitstamp chart. It was proposed that if price can break above this resistance, across exchanges, then a rally should be self-evident. If the market does fore go this trendline intersection, then the price pattern that has unfolded between the blue trendlines will conform to a corrective pattern that should resolve into a declining wave of unknown depth.
The 4-hour indicators are declining after having – all of them – diverged on the most recent high (magenta annotations). Average True Range (ATR, top panel) has barely ticked higher during the low trajectory advance to $432.
Potential downside targets in the Bitstamp chart are $418, $400 and $370.
If the market can somehow get above resistance at this late stage then the journey to $500 can be engaged.
The market has declined an opportunity to rally during the past few days and price remains below long-term resistance. Decline should set in after some additional indecisive trade in a market that has lacked conviction for several months.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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