Bitcoin price continues pushing higher in cautious but optimistic trade. Leading into major economic events, it is often prudent to stay out of the market.
Time of analysis: 14h30 UTC
From the analysis pages of xbt.social, earlier today:
The 4hr chart, although slow and applicable over days and weeks, is looking bullish.
The 20- and 200-period moving averages are ascending, and price is trading above both. Additionally, price remains established above an ascending trendline (pale blue).
There might still be a downward correction to retest the 20MA or the trendline, but there is no obvious indication that the market wants to give up the advance.
Let’s remain optimistic, yet cautious: the stochastics (second from top) are lifting, RSI has reverse diverged (implying another high) and MACD and its lower Bollinger band are above the zero line in the 4hr chart – unusual and a result of persistent advance.
4-hour ATR (Average True Range – not shown) has not cooled down enough to give us high confidence of an imminent upward reaction, but then again, the last leg of the November advance started from similar indicator conditions.
Although bullish sentiment is evident (and Bitcoin’s future only looking brighter every day), remember that all the trader needs to do is to remain calm and stick to his/her trading rules and method. If bitcoin will be going up with the Fed announcement, there is plenty of upside and the MA signals will be clear. Continue to look for reasons to hold back until Thursday, unless the chart gives a signal you just cannot ignore. Those are the best and most profitable trades!
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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