Bitcoin price sold off after falling below its advance channel trendline. The decline is at various stages of development in different exchange charts. Potential targets await lower in the chart.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
A look at the past 5 weeks’ price action in the 1-hour Bitstamp chart.
Price, once again, failed to maintain position above the upper Fibonacci fan line (drawn from the January 2015 low) . In the USD exchange charts price has found support at the 1-hour 200MA, but in the CNY exchanges price had fallen below this significant moving average, and has not climbed back to it.
It is, therefore, likely that price will target the level of the 1-day 20MA (annotated with a blue arrow) just above $400.
The corrective price pattern is a three wave structure, so far, and it will be interesting to see what the market does at $400. The option to resume advance remains, but if this is a larger decline with a price pattern comparable to declines during the past year, we may see the market trade price higher only to eventually sell off to the lower Fib line nearer this awkward advance’s base.
Bitcoin price is correcting the prior advance, or may be in full-blown decline. In the bullish camp, yesterday’s analysis chart illustrated how bitcoin price typically returns to its 1-day 20MA prior to unfolding a main wave of advance. For now it appears that such a reversion to 20MA support at $400 is underway. In the bearish camp: let’s hope that price does not break below $400 (Bitstamp) and open a Classic(TM) Unlimited chasm to $300 and below.
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Bitcoin price charts from TradingView.
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