During weekend trade price returned to the level where this wave originated from at $218 and 1340 CNY. Sunday trade has seen price systematically approach the support floor at $210.
Bitcoin Price Analysis
Bitfinex 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The conditions of our long trade were never fulfilled as price fell past our long entry point.
That price dropped lower is not that surprising, but more comical, because we had positioned our rocket, calculated the trajectory, had a rocket scientist check the ignition fuse, and then price just dropped straight through the launchpad floor in a moment reminiscent of the foibles of Wiley E. Coyote.
Price has descended in 7 waves, which lack the necessary definition or articulation to allow us to determine what this wave means. It may be the end of the larger declining wave, or it may be the start of the main portion of decline below $200. Either way, we would expect to see an upside correction as price tests the support floor at $210 with a few more probes lower.
Thus far, the market has been unable to trade price lower to support, and has also lacked the maracas to take it higher. Bitcoin price may have two major options here: 1) enter a multi-week consolidation with limited movement as the market resolves it's uncertainty or 2) hit the downside and find the bottom on a few spiking moves into the low $200s or $100s.
An xbt.social member argues for more downside:
Price has finally reached support (from February's lows) at $210. It is unlikely to drop lower immediately and may consolidate above $200 before dropping lower. The bearish tendencies (read institutional sellers) in the market are determined, and it may be profitable to join them on a break below $200.
Bitfinex orderbook depth and buy/sell volume.
What do readers think? Please comment below.
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The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.