Bitcoin price is winding sideways for a second day. Supposedly neutral GDP and Production data out of China failed to catalize a market move earlier today.
Time of analysis: 13h00 UTC
From the analysis pages of xbt.social, earlier today:
China GDP and Production data came in close to expectation at 02h00 UTC this morning.
China GDP q/y (actual: 6.8% expected: 6.9% previous: 6.9%)
China Industrial Production y/y (actual: 5.9% expected: 6.0% previous: 6.2%)
Global markets were awaiting the data release with great anticipation, since negative figures from China would have provided the catalyst for selling in the current season of Financial Meltdown glut. But the data (most likely cooked) did not provide the market with an excuse to rout stocks, nor did it send the BTC/CNY exchanges into a buying frenzy, as we’d have expected.
Bitcoin price is trading sideways. The 15-minute and 1-hour charts are edging toward a sell signal (visible to xbt.social members), but the 4hr chart has price trading above an up-curling 20MA which implies a decisive drop is delayed for now.
As an aside, remember that we use the 15min chart for confirmation and not as a stand-alone entry signal. With there not being a clear sell signal in any of the charts, our xbt.social Sell Trade Recommendation remains pending.
With no reaction from Chinese bitcoin speculators today, and with the market in general keeping trade within a narrow price range, we can only assume that price is consolidating. Failure to break below the strong support at last week’s low will reinforce this view. Breaking below, well, that will open up decline to $320 and 2100 CNY as discussed over the weekend. In the final analysis, a surge higher will be a far better outcome in the medium term, than would a profitable decline in the short term.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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