The bitcoin price chart took a bearish turn earlier today and analysis looks at the most likely support levels where the bulls might be entrenched.
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Bitcoin Price Analysis
Time of analysis: 15h00 UTC
Bitstamp 1-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
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A down-draft during the UTC evening, and an apparently mild sell-off is approaching the 1-hour 200-period moving average.
As can be seen in the 1-hour candle Bitstamp chart, above, a few large sellers had pulled down a couple of long candle wicks earlier in the day.
The 1hr 200MA (red, red arrow) should offer minor support, but it is more likely that the market gives more credence to the $700 psych level at the top of the orange rectangle. If price dips below $700 then $680 can come back into play, or perhaps even the lower edge of the rectangle where the rising 800MA (purple) is currently offering support at $650.
It will be a surprise to see the present sell-off turn into full-blown decline. Any which way, this is not a time for trading, but for observing the market to see where price finds support. Subsequent price action should offer trading opportunities.
The most important rule of trading is to play good defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. I do that so I can define my maximum possible draw down. – Paul Tudor Jones
Summary
Yesterday’s sense that the larger advancing wave is destined to surpass $800 is not yet dashed on the rocks. Today’s decline may be a test of support during a large consolidation above $680 or $700. If the worst happens, then we might see a multi-week correction to retest $500 before the real rally takes hold in the second half of the year.
Bitfinex Depth Chart and Buy/Sell Volume
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Disclaimer
The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.
Image from Shutterstock.
