The bitcoin price chart advanced $140 since yesterday’s low. In the meantime markets rudely awoke to find Brexit had come true. Chaos ensued, but the bitcoin market keeps ticking like clockwork.
Bitcoin Price Analysis
Time of analysis: 13h00 UTC
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OKCoin 2Week Futures 1-Day Candle Chart
From the analysis pages of xbt.social, earlier today:
A chaotic day in global markets as Brexit became an unexpected reality.
Market consensus had ruled out a vote in favor of the UK leaving the EU, hence today’s outcome sent markets reeling. British Prime Minister, David Cameron, has announced that he will resign after the referendum and the pound (GBP/USD) dropped to $1.32 during the day. The US dollar was the main beneficiary in the forex markets and gold rallied $100. Bitcoin price’s recent volatility returned and it apparently rose to the occasion and achieved a $140 advance since yesterday’s low.
The OKCoin futures 1day candle chart, above, is annotated with a couple of Fibonacci tools, as well as, a potential wave count for this year’s chart development. The recent rally achieved a 3.618 Fib extension of its base pattern, and, yesterday, completed an initial corrective wave (labeled ‘a’) near 0.618 of the height of the entire advance. These are typical Fibonacci ratios for commodity charts such as bitcoin and gold.
As explored in yesterday’s analysis post, neither the 1-day stochastics (top) nor MACD (second from top) is showing an indication favorable to advance. We can, therefore, assume that the past two days’ advance is merely corrective and that price will return to the recent lows in the coming days or during next week.
Whether price makes a new low remains to be seen and we watch the 1-day chart indicators for suitable setups for advance.
Remember the clever speculator is always patient and has a reserve of cash. – Jesse Livermore –
A rough day in global markets has bitcoin price, encouragingly, retracing the recent sell-off. The chart indicators and wave count imply that another declining wave will eventually print in the chart to complete wave “4”. If the wave count is correct, then the next wave of advance, wave “5”, promises to be another big one. Patience while the market corrects the recent rally.
Bitfinex Depth Chart and Buy/Sell Volume
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Bitcoin price charts from TradingView.
Image from Shutterstock.