In the 1-hour Bitcoin price chart, the last hour’s price action had concluded in a spinning top candle indicating the uncertainty in the market. It is, no doubt, related to the US Marshall Auction winner announcement at the end of the US session at 5pm EST.
From the analysis pages of xbt.social, earlier today:
At the present juncture, the price correction has not touched any of our MAs at multiple timeframes. So what resistance did it meet at 1650 CNY (BTC-China) and $265 (Bitfinex)? The most obvious resistance at this level is a horizontal resistance zone that had been targeted by previous advances, for example, the previous wave high to $260 in mid-February. The move away from that demand level was strong – perhaps going too far too fast – and, hence, the price correction of the past several hours.
There is no purpose in trying to anticipate this market. The correctional formation looks incomplete to the downside, but a spinning top candle implies neither the bulls nor the bears know what to do now.
Either the market anticipates the auction results by erupting into a rally or price slowly heads down to the 1-hour 200MA near $262 / 1638 CNY.
The moving averages appear to be well-aligned for an imminent buy signal, but the only way to be sure is to see it. The chart is ambiguous, so observation only and no action at this time.
Earlier today a move to the 15-minute 200MA was rejected and saw price make a new correctional low in that chart. The low was accompanied by indicator divergence, implying a move higher, yet the market has so far been hesitant to do the obvious. The announcement of the winner of the Dread Pirate’s Bitcoin auction, later today, may be the catalyst the market needs for action.
The Bitfinex depth chart shows the buy order support level has dropped below $260, and the potential sellers are bearing down on the area of price action, currently at $274.
What do readers think? Please comment below.
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This post was last modified on 12/07/2015 12:45