Bitcoin price is gradually approaching $600 (Bitstamp) as the chart’s momentum indicators show ongoing compensation for last week’s strong sell-off. Could advance continue immediately? Possibly, but with a few obstacles to consider.
Time of analysis: 13h00 UTC Sunday
From the analysis pages of xbt.social, earlier today:
Since the low struck at $465 (Bitstamp), last week, price has steadily advanced higher in the chart.
At the time of writing price has pushed to its 200-period moving average near $594 in the 1-hour chart (not shown). However, the 1-hour stochastics have begun falling away from their maximum and 1-hour RSI is diverging from the new high. This advancing wave may still tag $600 in the coming hours but indicators in the 1-day chart have not yet aligned sufficiently to give strong confidence of ongoing advance.
Following an alleged “hack theft” of approximately 120k BTC last week, the nefarious Bitfinex will most likely re-open for trade during the next 24 hours and the event could generate some market volatility.
After a ~36% bail-in imposed on every exchange user’s funds the company officers have announced that they will convert their customer liability to an altcoin – specially created for the occasion. The exchange will allow customers to access their diminished funds and brand new tradeable asset, BFXcoin, in controlled stages:
The 1-day chart, above, shows bitcoin price action for the past three years.
Whilst there are several confirmations that remain outstanding before we can be confident about advance, notice the chart structures at last week’s low. Price had fallen onto support of both the 1-day 200MA (red) and the horizontal support (blue) of what used to be a resistance ceiling for most of the first half of 2016.
The bounce from the low is impressive, yet, even if it continues higher, it must eventually overcome the obstacle of multi-year resistance at $680 (grey horizontal line). RSI seems to have made a decisive low (magenta circle), and smart traders should wait for the 1-day MACD (second from top) indicator line to cross above zero before considering a long position.
Bitcoin price advances cautiously after a bounce from $465 (Bitstamp). To the upside is resistance at $680 and to the downside the strong support at the recent low of $465. The immediate level that the market is eyeing appears to be $600, and depending on whether this level is won or lost, traders can consider their directional bets. In addition to such support & resistance breaches, the xbt.social trading method seeks technical confirmation from a few basic indicators. Readers are invited to join, learn and profit.
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The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.
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