Bitcoin price dropped below $420 yesterday and continues sideways in most exchange charts while compulsive buying at the Chinese exchanges attempts a revival of the strained, low-volume advance.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Unusual for the strangely coordinated bitcoin chart, today saw divergence in price action across exchanges. Whereas the USD exchanges (notably BTCe, Bitfinex, Bitstamp) have held near $420 for most of the day, the Chinese exchanges (BTCC, Huobi and OKCoin amongst others) have swung strongly in the chart area below yesterday’s high.
Early trade saw price make a larger correction from yesterday’s high. Again, there was disparity between exchange charts: price hit the top of the channel trendline illustrated in yesterday’s analysis chart (light blue), while the OKCoin 3Month shown above did not hit this upper resistance level and the bulls in the exchange are throwing everything including the kitchen sink and their grandma at trying to complete the journey.
If the current correction, apparent in the majority of charts, will continue lower then price must get below the 1hr 20MA (green) and in this case it is likely that price will target the lower channel trendline (light blue) and, if decisive, the red Fibonacci trendline.
Until we see price break below that lower channel trendline we can only assume that the uptrend will continue.
Bitcoin price continues advancing without technical support and the bulls will retain control of the uptrend until the lower channel trendline is broken. Had it not been for the fundamental security threat posed by non-science, and dangerous, populist-led projects like Unlimited and Classic(TM), this uptrend would have been believable – and enjoyed more participation.
Profit-takers wait overhead.
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Bitcoin price charts from TradingView.
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