Bitcoin price decline accelerated overnight. Downside progress has seen price dip below $420 earlier today, and a correction currently has price retesting this level.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
Price looks to be embarking on the next wave down after a correction from the most recent low, and the target remains $400 (Bitstamp).
The 1hr 20-period moving average (MA) has crossed below the 1hr 200MA (red). This is a bearish indication but, unfortunately, there is no confirmation signal in any other timeframe to justify increasing position size. If price does make the plunge to $400 soon, we will only get the benefit of the quarter position size trade we initially opened.
Although it looks likely, it is not guaranteed that price drops straight to $400. Let’s not forget the raging bulls – excited about their analysis that price is only presently correcting before embarking on a new rally. Hence, their collective action could easily reverse price back to the vicinity of $440.
Without indicator signals being confirmed at other timeframes, it is unwise to increase risk by increasing position size at the moment. With that said, even with a quarter position size, a drop to $400 will mean profit from the market, and will not be a cause for regret!
Bitcoin price decline continues. If and when $400 is achieved a reversal (most likely only an upward correction) is likely. The bulls might act strongly, so we could very well see $440 (Bitstamp) again. Be cautious of a potentially strong reversal as the next declining wave bottoms out.
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Bitcoin price charts from TradingView.
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