Bitcoin price looked to be advancing only to bump against the resistance ceiling. How to trade in the coming days (or weeks) is dependent on how the market negotiates $680.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
The decision not to open position – based on the unclear signaling and failure to establish above $680 (Bitstamp) – was prudent.
Remember that, in trading-speak, when we say “establish above $680”, that means the trader wants to see the market open a price candle (1hr in this case) above $680 and also close the candle above $680. This did, in fact, happen at 04h00 UTC today 18 July, but the candle was a Doji (magenta arrow), which implies reversal back down.
The $680 level is significant because it has exerted influence since late 2013.
Let’s remain patient and disciplined, xbt.social – the market rewards discipline. It makes more sense to preserve account funds for when we do see a clearly signaled opportunity, rather than chasing after potential “to the moon” rally waves in frustration. Put another way: we want to see the market take ownership of $680 rather than make money bets that it might!
Bitcoin price has not retaken $680 and the market is sliding away from this resistance level. The bulls might become reinvigorated lower down in the chart, but there is no need to try and predict what the largest wallets might do – rather make your trade when they actually do it. $680 is a key level.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.
Image from Shutterstock.
Last modified: July 18, 2016 17:23 UTC