Bitcoin price had, during the past week, begun to resemble a rocket path with an extremely distant destination. Calls for an overdue correction seemed futile until price surprised by slamming down 50% of the week’s advance.
Time of analysis: 15h22 UTC
From the analysis pages of xbt.social, earlier today:
Wild swings at altitude show the large degree of waves that underlie this move that started near $200. The initial wave of decline (labeled “A”) had retraced exactly 50% of this wave of advance.
A wave count shows that the price pattern is still ambiguous. The black count has the top in and implies that price could be going down in wave C, next. This outcome will be confirmed by price crossing below the red 200MA and then the dashed grey line below price action.
The red count presents an alternative. The top is not in and price will move into another wave of advance. By crossing above the overhead dashed grey resistance level, price will confirm this count and invalidate the black count.
Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected. – George Soros
The correction may not be done yet. The depth of the coming retracement will show if this price wave has still to achieve its target or if a new decline has begun. The red Fib line at the bottom of the chart represents a potential target.
Bitstamp orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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Last modified (UTC): October 31, 2015 18:48