Bitcoin price has traded sideways for three days and according to the bitcoin chart’s average true range, a tipping point is in sight.
Time of analysis: 14h30 UTC
From the analysis pages of xbt.social, earlier today:
No substantial change from yesterday, and the 1hr chart continues conforming to the indicator and MA conditions at the previous juncture circled in the chart.
One concern is that the 4hr 200MA is losing altitude – something it has not done for more than two months. This fact introduces some doubt as to what signal we’re going to get once this sideways correction ends – will it be a buy or sell signal?
Another wave to the upside would look right in the chart, and the Average True Range (ATR) indicator (bottom) is approaching a support level from where price had pushed higer during the past few weeks. This may be the technical support that sees at least one more wave of advance pus to $440 (OKCoin) and 2750 CNY.
Bitcoin price is consolidating into the week leading up to the Fed’s rates announcement. In the past week we’ve seen gold, the US dollar and the euro reverse prior trends, albeit temporarily. With the bitcoin market sometimes lagging – and at other times way ahead of – most market instruments, it’s a tough call as to what the block chain’s flagship is going to do next: lead or follow?
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
Image from Shutterstock.