Bitcoin Price Holds Support Again

Journalist:
February 1, 2016

Bitcoin price is showing some recognizable indications in the 4hr chart where price has failed to make new lows and is apparently finding support.

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Bitcoin Price Analysis

Time of analysis: 15h00 UTC

BTCC 4-Hour Chart

From the analysis pages of xbt.social, earlier today:

Support is currently holding at an ascending trendline blue) and some familiar technical indications are forming:

1) MACD (top) is compressing to its zero line
2) The stochastics (second from top) are not swinging in their full range despite decisive price moves
3) RSI has not diverged from price once during the past 2 weeks, and the RSI pattern mirrors price wave for wave.

One of three scenarios are now likely:

A) consolidation into a base for advance and then a surge higher
B) A surge higher (without consolidation) and then a gradual advance – such as we saw in September 2015
C) Additional decline is also possible, the 1-day chart’s 200MA is at $320 (Bitstamp) and 2000 CNY. Price could conceivably continue decline to this former level of support

Summary

A consolidation will be easy to identify and we can expect a series of buy signals when advance begins. However, a sure confirmation of additional decline will be a breach of the supporting blue trendline. Since decline has been complex – and messy – until now, and with many false signals – it is probably best we sit a potential last wave out, unless it is clearly signaled.

Bitfinex Depth Chart and Buy/Sell Volume

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Disclaimer

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.

Last modified (UTC): February 1, 2016 17:27

Venzen Khaosan @venzen

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect. He has found a solution to the PKI mechanism. Email me to discuss.