Bitcoin price has pulled back from its highs near $420. It is not immediately clear if this is merely a price correction or a reversal back into decline.
Time of analysis: 16h00 UTC
From the analysis pages of xbt.social, earlier today:
Price had been holding near today’s high at the 4-hour chart’s 200MA. On the last pull lower, price had triggered our xbt.social 1-hour dynamic stop loss and the buy trade is closed.
What happens next will be interesting, since we will now see whether trend continues higher or reverses back into decline.
Directly overhead is the resistance ceiling (pale blue) that currently overlaps a 2.618 Fib extension of the initial wave of advance of the wave structure since last week’s low. If price does continue higher, then this level represents the next obstacle to the upside.
Today’s high caused bearish reverse divergence to a previous price high as annotated with a magenta line in RSI. This could turn out to be either a temporary reversal signal (prior to upward continuation) or this may be the signal for a trend reversal and the start of a new wave of decline.
A straight-forward trade since yesterday’s surge higher was closed, in profit, earlier today. We now await additional price action and technical indications. There is no need to anticipate what price may do going forward – all we need to do is wait for the next signal in the chart.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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