Bitcoin price achieved $550 in the Bitstamp chart, today. With Bitfinex already having spiked to $570, it looks like price will now correct the wave of advance before pushing higher. Technical analysis looks for confirmation of the move, as well as its potential targets.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
Bitcoin price continues drooping lower despite sustained, albeit low, buying volume. While the other exchanges drew sideways during the past 24 hours, Bitstamp made a bolt for – and hit – $550.
By now, the 1-hour candle chart indicators are confirming the subsequent move lower:
1) the stochastics (top) would typically seek to group at their lower extreme before we could confidently call the declining wave over.
2) RSI is still holding above its usual advancing support at 40, but
3) MACD (pane above price) is moving swiftly lower below its signal line and has some distance to go before it either reverse diverges to a previous price low, or hits its zero line.
The weight of technical indications, therefore biases outlook to continuing decline, and we want to see price find support at one of the three levels indicated. Testing $500 support seems a reasonable outcome after the vigorous advance, while the 200MA at $480 or previous resistance ceiling at $470 could come into play.
However, if the strong RSI holds support and the market re-engages advance , then the next wave of advance beyond $550 will be set-up. There is no strong indication that price is about to reverse back into advance, but that’s how advance keeps going, relentlessly, in the bitcoin price chart.
Bitcoin price drops away from the self-evident $550 target as most other exchange charts roll over a hillside of decline. If decline continues – which technical indications confirm – then the most obvious downside target is $500 psych support. Below that $470 (Bitstamp) may attract sellers, but let’s first observe price action target $500 before discrediting a swift return to advance.
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