Bitcoin price continues trading sideways as the market ponders its next move.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
If price action repeats the corrective price pattern circled in magenta, we may see the next wave down in the coming days.
There is an annual pivot level at the level annotated in orange. Price may pause at this previous low, and even bounce higher in a more complex correction, so the xbt.social trade recommendation that will be issued later today will only be for a half size position. The position can then be increased as decline continues below this strong support zone.
As noted in yesterday’s analysis, we remain on the lookout for one of 3 outcomes:
1) Price finds supported at last week’s low and then advances.
2) Price consolidates and then continues advancing.
3) Price continues sideways correction and then resumes decline.
The blue trend channel shows price breaking below it on the most recent low – often the sign of a 3rd wave. The implication is that price is now in wave 4 and will eventually complete decline in wave 5.
If we do not see the price pattern circled in magenta, above, accompanied by the same combination of signals in the 1hr and 4hr charts, then continued decline will become less likely and we’ll have to stay out of the market until we get a clear signal across timeframes. However, with the 1-day chart looking increasingly bearish in all the exchange charts, the bias is currently to the downside with targets at $320 (Bitstamp) and 2100 CNY.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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Last modified: January 18, 2016 18:35 UTC