Bitcoin price has drawn sideways around $450 (Bitstamp) for most of the day before making a rounded push higher. The decline may be over but additional price action is needed so soon after the strong upside reversal.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
The attached 15-minute chart shows price action since early May. A few chart annotations relating to previous analysis are visible, but today’s analysis focusses only on the drop since yesterday.
It is unclear whether price has found support at the $450 level, and will now begin another slow push higher, or whether the sideways price action is setting up the next leg of decline.
If price drops away from the safety of the 15-minute 200MA (red) then we have decline targets at $440 and $425 as identified in yesterday’s analysis post.
In the indicators, note that the stochastics (top) are approaching their minimum but MACD has not yet reached its lower Bollinger band. This does not mean that price must necessarily continue decline, since continuing sideways movement can also complete the stochastic minimum grouping.
The possibility of a resumption of advance cannot be ruled out, since the price action since yesterday’s last low does resemble the start of the previous push higher – visible in the left of the chart. However, it does imply that the resulting wave of advance will be corrective to the upside and, therefore, unlikely to break through resistance.
Bitcoin price has succumbed to a sell-off from the resistance zone. The push from $450 may the start of another slow advance, but may equally be trading sideways prior to continuing decline. Additional price action in the coming 24hrs will help clarify the market’s intention.
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Bitcoin price charts from TradingView.
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Last modified (UTC): May 11, 2016 16:47