A strong drop from yesterday's consolidation zone saw the Bitcoin price retrace 50% of the previous five wave advance. The question is now whether a bottom has been struck or whether more downside is due. This analysis is provided by xbt.social with a 3 hour…
A strong drop from yesterday’s consolidation zone saw the Bitcoin price retrace 50% of the previous five wave advance. The question is now whether a bottom has been struck or whether more downside is due.
From the analysis pages of xbt.social, earlier today:
With 50% of the prior advance retraced, there is a chance of trend reversal, back to the upside, from 1410 CNY and $228. However, as the 15-minute chart above shows, there is a large reverse divergence between price and the MACD indicator – illustrated in magenta. This divergence implies trend will continue lower, despite the apparent strength of the current move up.
The 1-hour chart (not shown) does not indicate the divergence and its indicators are neutral to the current move higher, so the upside move may continue higher after a correction in the 15-minute chart has played out.
There are various wave counts being published for the current move – some of them very bullish. Bullish views of the Bitcoin chart are becoming more common, and we may soon see that outlook expressed in the chart. However, before long-term trend flips 100% to the upside, there are some moving average imbalances that need resolving between $215 and $240. Unless there is another dynamic at work in the chart, price may spend some time at current chart levels.
s68k keeps the leading position and has capitalized most of his gains, as has Mateusz.
The rest of the field hold open trade positions and their decision on direction here will be very important. It takes a while to get in and out of positions using Coinarch’s trading platform. Not because the platform is slow, on the contrary, but order opening can only be executed in $1000 blocks, so a $10k position requires the trader to manually place ten market orders. Perhaps in future rounds of CoinCompetion, Coinarch should allow traders to open positions of arbitrary size? What do readers think? Please comment below.
Join CoinCompetition and win 5 bitcoins.
Bitcoin price has reached the 50% Fibonacci retracement level from which it bounced strongly earlier today. Chart reverse divergence implies that brakes will be put on the strong momentum of the latest surge to $230 and 1430 CNY. Remaining downside may see price pull to $225 / 1390 CNY (0.618 retracement) and as low as $218 / 1340 CNY at the 0.89 Fib level.
Bitfinex orderbook depth and Buy/Sell volume reveals bullish intention lower in the chart.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.
The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Last modified: January 25, 2020 11:06 PM UTC