Bitcoin price was eagerly traded to the upside today in wave that now appears to have topped out just below long-term overhead resistance. Upward continuation will break resistance and herald a rally, but so far it looks like price is falling back into the consolidation range.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Very frustrating price action. When you think it won’t it does. When you think it will it doesn’t. And in either case analysis seems to hit and miss randomly through the corrective variation.
The present pattern labeled “3” in the chart above, so far looks like a smaller variation of the preceding patterns labeled “1” and “2”.
The intervening pattern between “2” and “3” presents a challenge. In one way of looking it resembles a base for advance and implies that price should continue higher. From another perspective it could merely be a more lively variation of the correction between waves “1” and “2”.
Price has not yet established above the long-term resistance trendline, so we wait to see if price now declines or forms a new wave to the upside.
Our tipping points are now at $430 and $408 in the Bitstamp chart. Bitcoin price appears to have completed another corrective upside wave. After three almost identical waves to the upside, we’d now expect the price pattern to change. The unfortunate alternative is more of the same and the sideways grind may continue.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.