Bitcoin Price Compression Building Pressure

By
Venzen Khaosan @venzen
3 years ago

Bitcoin price keeps consolidating in a narrowing price range. Although there is a breakout building pressure in the chart, there is not yet any technical evidence of the eventual direction.

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Bitcoin Price Analysis

Time of analysis: 15h00 UTC

Bitstamp 1-Hour Candle Chart

From the analysis pages of xbt.social, earlier today:

The rounded price wave formed over the past two days has begun breaking down and we watch to see if the market will sell price back into the blue support zone.

If price is held above the 200MA (red, near $655 Bitstamp) then there is the opportunity that this wave can continue higher.

Below the 200MA there is an additional potential bounce level at $640, at which a base wave may complete and then advance into a larger rally. Of course, losing that $640 level could be seen as a bearish signal and then the low $600s and a potentially larger decline may develop.

Summary

Bitcoin price continues consolidating. Today, price has lost altitude toward the $640 consolidation pivot, but there is not yet any strong technical indication of a trending direction. Rather than guess an eventual breakout direction, traders should wait for price to confirm a trending move, and then establish either above $680 or below $600, before opening positions.

Bitfinex Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin-price chart.

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Disclaimer

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.

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