Bitcoin price takes a break today as the prospect of advance dawns on the market. The general hesitancy to join trend is understandable given this chart’s perverse tendency to fake-out on apparent trending moves. Sometimes you just have to believe what you see.
Time of analysis: 14h00 UTC Friday
From the analysis pages of xbt.social, earlier today:
The 4hr exchange charts corrected lower today after making a good $90 advance during the past week.
Today’s move lower forced RSI (second from top) to form reverse diverge (an RSI lower low that is not confirmed by price, which only formed a higher low), annotated with magenta lines. Once the downward price correction is over we would expect to see this reverse divergence result in a strong upward price reaction.
At the time of writing price is trading below a 2.618 Fib extension (red arrow) of a minor base wave. A lagging MACD (magenta circle) suggests that price may correct deeper still, but the general sense is that this advance will want to touch (or get close to) $680 at the orange arrow.
AT xbt.social we’re holding long positions since $593 (Bitstamp) and will continue holding while the technical chart conditions remain bullish.
Some readers may want to join trend, and others might be wondering if additional lows will print before advance continues. The lowest risk options are:
1) Close position if price drops below the channel trendline represented by the rising magenta line.
2) Join trend when price pushes above $630.
After an ambiguous start in some exchange charts, the bitcoin price advance has gathered momentum. Today’s correction does not yet represent a trend reversal and traders are encouraged to look higher toward $680 (and perhaps higher yet). The whales have fired several surging volleys to give us the hint about their intention.
What do readers think? Please comment below.
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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.