Bitcoin price has climbed back above $400 and 2700 CNY. Whether this is a new wave of advance, or merely a correction prior to more decline remains to be seen.
Time of analysis: 13h30 UTC
From the analysis pages of xbt.social, earlier today:
Price has returned to the confluence of its two major 4-hour moving averages (MAs): the 20MA and the 200MA.
In the 1hr chart (not shown) we see that five waves have formed to the upside. This may be a sufficient correction to see decline resume immediately, or the correction may only be halfway, and the market may compound the correction by keeping trade in this area and doing battle to maintain price above or below the 4-hour MAs.
Other than upside RSI reverse divergence at all timeframes, there is no clear indication or MA signal anywhere to help us anticipate what price may do next. Ordinarily, a 20MA and 200MA cross-over such as featured in the current chart, is bearish. Yet, price rising above it, implies correction. Hence, unclear signaling.
It is within the realm of possibility that the market trade price all the way back to where this decline started last week. More likely, is that the market contest price at current levels, thereby forming either a corrective pattern setting up additional decline or a new base for advance. However, there is not yet a resolution about the looming hardfork, so negative feeling may persist and decline eventually resume.
Bitcoin price had created some distance between its weekend reversal level near $380 and the current trading level of $410. The present advancing wave is unfolding amidst mixed technical signals, so best to wait for additional – and surer – indications before betting on direction.
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Bitcoin price charts from TradingView.
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