Bitcoin price dropped back toward $660, overnight, but now seems to be engaged in a sideways base formation.
Time of analysis: 13h00 UTC Sunday
From the analysis pages of xbt.social, earlier today:
Price action is looking encouraging and now we wait for technical confirmation of an advance.
Despite a recent bearish 4hr MACD cross below its zero line we see price maintaining support above $550 (magenta annotation).
Price remains above its 1day 200MA and the 1day MACD has pulled out of its steep dive, now leveling out regardless of the overnight drop back to support.
We cannot, yet, with confidence, rule out a move toward $500 psychological support, but it is looking increasingly unlikely since the 1day 200MA is already ascending through $520. If the market can keep price above $550 support this may be the base pattern prior to an advance toward the other significant level in the current chart area: $680.
Notice the advancing stochastics, top right. xbt.social’s Buy recommendation remains valid and we wait to see advance above $600 (Bitstamp) – or another confirmed buy signal in at least two other timeframes.
Bitcoin price action holds support above $550. If it continues to do so in the coming days we may soon see a push back toward $680 resistance. The smart strategy in the current chart is to wait for price to advance above $600, since that will open generous profit to $680, while allowing the market to go through the motions if it is indeed building a base pattern for advance.
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Bitcoin price charts from TradingView.
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