Bitcoin price crossed two important overhead resistance levels earlier today and the last 24 hours’ advance has biased the charts to a bullish outlook at most timeframes.
Time of analysis: 14h30 UTC
From the analysis pages of xbt.social, earlier today:
All of the timeframes are bullish after the past day’s rapid advance.
The trendline (purple) that has capped several attempts at advance during 2015 has been breached, to the upside, for a second time since November.
The declining trendline (orange) that has capped advance since the November top has also been breached to the upside. The overall picture is more bullish than at anytime during 2015.
Where the wave will form a convenient retracement, for us to get into trend, is not yet clear. Opening a position at the current price juncture is risky and not dictated by the xbt.social method, so traders have to remain patient.
In hindsight, yesterday’s buy signals were ambiguous and the decision to wait for price to confirm the advance by breaking the two significant (and long-term) resistance layers was a prudent course of action.
The return to advance has transformed all timeframes to a bullish condition within 24hrs, so now we can look for the optimal setup to get into trend. Price seems to be forming a local top near $410 (Bitstamp) and 2700 CNY. A pullback, and test, of the resistance-turned-support level at $380 and 2550 CNY may provide the buy signals we seek.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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Last modified (UTC): December 6, 2015 20:50