Bitcoin price was pushed higher by eager buying today. The price move shows signs of being a corrective advance that will soon give way to the declining scenario discussed in weekend analysis.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Although the resistance ceiling is still some distance above price, it is likely that the current advancing wave is close to making (or has already made) a corrective top.
The wave looks aggressively impulsive, but there is no reason to believe it will achieve a new high above the top formed nine days ago. There are no buy signals at any timeframes and the indicators are generally overbought. In many ways, the present wave is typical of an impulsive C wave in the final position of an upward correction.
If price tops out at current levels it is unclear whether a sell-off will take hold immediately – and sharply – or whether the market will take some time to consolidate. There are many sell-orders above price but the buyers are still eagerly piling in, as can be seen from the impulsive price action. It may be that the end of advance only gradually finds acceptance among the bulls, hence leading to a stair-stepping decline.
For now, we observe and wait. A clear sell signal should get us into a profitable decline.
Bitcoin price has fulfilled expectations by re-attempting advance in a zigzagging corrective wave. We now wait for confirmation that the upward correction is complete, before engaging in short trades down to the 4-hour chart’s 200-period moving average (red arrow in the above chart) near $400 (Bitstamp) and 2700 CNY.
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Bitcoin price charts from TradingView.
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