Bitcoin price looks to be slipping from $600 and 4,000 CNY in some exchanges exchanges. Failure to hold this critical level opens the possibility of another corrective wave of decline.
Time of analysis: 12h00 UTC Sunday
From the analysis pages of xbt.social, earlier today:
Price is grappling with support and resistance at $600 and 4,000 CNY across exchanges.
In the 4hr chart we see that price had recently used the 200MA (red) as support. Yet, RSI had advanced too far too soon and formed reverse divergence to an RSI peak from 2 weeks ago (magenta). Price is, hence, forced into correction. The pale magenta trendlines above and below price imply a consolidation range that should see the Bollinger Bands continue to narrow around price in the 4hr and 1day charts.
If the current correction were to pull below the 4hr 200MA (and $550 support), then a plunge to $550 is possible: this level corresponds to a 2.618 Fib extension target, as well as a 50% retracement level (scale right) of the entire advance since the early August low. Both of these Fibonacci levels are frequently targeted by the bitcoin price chart.
Bitcoin price must hold $600 in order to continue advance. The apparent reluctance to make upside progress above $600 may forewarn another downward correction. Will we see advance into the end of the year? The largest timeframes imply “yes”. From the 1day timeframe down it appears that it must happen either via a prior consolidation (several weeks around $600) or a drop-and-bounce to $550.
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Bitcoin price charts from TradingView.
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