The bitcoin price held above $660 (Bitstamp) today, as the market stays in flux. Another declining wave seems due, but it is unsure whether this will unfold sooner rather than later.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Price has held at the $660 level overnight and the market may attempt to hold this level. However, looking at the blue annotations on the left of the chart we can see that an eventual return to the 4hr 200MA (red) is inevitable.
Whether the market continues selling off now, or first puts in an upward correction, remains to be seen. A resumption of the sell-off should see price target the $600 level near the 200MA (red arrow). If the market first corrects upward, we may see price approach the previous high in the coming weeks, followed by a second sell-off if nerves become shot up there.
Either way, we should see price resume its gradual advance into another large rally. The larger perspective of the 4hr chart shows the fractal nature of the price pattern: successive waves of advance are punctuated by sharp sell-offs that return price to the mean average of the 200-period moving average.
As pointed out in yesterday’s post, there is sufficient reason for us to believe that the most recent wave is only a foothill of a much larger long-term price climb.
The price chart is exhaling after a good-sized rallying price wave. During 2015 the chart had wound down from its larger speculative peaks over a couple of months. With the reward halving looming, this time may be different – let’s observe: there is a potential opportunity to buy in lower down in the chart.
What do readers think? Please comment below.
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