Bitcoin price is pushing closer to its November closing highs and technical analysis suggests a price correction to the downside is due.
Time of analysis: 14h30 UTC
From the analysis pages of xbt.social, earlier today:
So far, so good for our trade from $315 and 2730 CNY that now seems to be reaching a ceiling.
The price wave may not reverse here, but draw sideways before another wave of advance. Either way a dynamic stop loss will take care of profits.
Price is up against a Fib line, as well as a Fib extension at this level. Additionally, the custom stochastics are grouping at the top of their range and MACD is approaching its upper Bollinger band.
If price continues higher then the next overhead Fib line near the 3000 CNY psych level should present a reaction zone. The equivalent Bitstamp/Bitfinex level seems to be $450. Upon approaching these price levels the charts – at most timeframes – will manifest indicator divergence to the price high and most likely see strong correction. This should happen in the coming hours or days.
Bitcoin price is now approaching the closing highs of the November top. The daily candle of November 4 had closed at 2941 CNY – less than 80 CNY to the upside. Upon pushing above 2950 CNY a correction is likely. Notice that Bitstamp has already pushed above its November 4 closing high of $407 (with indicator divergence), so a correction is overdue.
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Bitcoin price charts from TradingView.
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