Bitcoin price rallied, today, at the start of the Asia-Pacific session. The initial push was strongest and has since waned as price approaches resistance.
Time of analysis: 15h31 UTC
From the analysis pages of xbt.social, earlier today:
To the upside, we have the 4-hour 800MA (purple).
If BTC-China and Huobi can push above their 1-day 200MA then the 4-hour 800MA becomes a target at its intersection with the rising grey trendline. Since the upside exuberance is being led by BTC-China and Huobi, let’s keep an eye, specifically, on their behaviour around the 1-day 200MA.
To the downside we have an MA buy signal in the smaller timeframe charts and below that a support level around $220 that stands at the gates of a sell-off. It must be pointed out that we have been in a choppy correction since late August and it is usually our xbt.social rule not to trade corrections. The price action during the past few weeks shows why: price flings out unexpectedly, without making the technical targets we identify.
Traders who are not in this rally already should wait before actioning upside positions. Sometimes its best NOT to trade. Price is wedged between several technical support and resistance features. The probability of this being a rally to the moon is low. Additional decline may be in store. More and more, we see a decrease in larger timeframe volatility and, for now, price remains bound by the 4-hour 800MA, to the upside, and the support at $220.
It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong. – George Soros
Price is meeting strong resistance to the upside. On a break above the 1-day 200MA, price will simultaneously advance above the early September high. This will open up the $250 and 1600 CNY and price will be out of its current range with more room to advance. Holding below the 1-day 200MA should see a downward retracement but, for now, the bulls seem in control and the outlook for continuing decline must wait.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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