Bitcoin price has fallen out of an awkward advance channel that failed to make a new high. Hopefully, this is the start of a consolidation prior to a mid-year rally, and not indicative of security fears in the face of the blockchain hijacking being planned by the Big Blocks cargo cult of Silicon Valley.
Time of analysis: 14h30 UTC
From the analysis pages of xbt.social, earlier today:
Price had failed to maintain position above the supporting channel line (blue). The top reversal was unexpected, and, until the last moment, looked like it was ready to attempt another wave of advance.
Now that price has fallen back into correction, it should seek out at least the $400 psych level or the level of the 200-period moving average (red arrow).
Judging by previous price behavior, it is also likely that price unfolds a zig-zagging corrective pattern until it finds support.
At the time of writing the price action resembles advance. If there is any advance from current levels then it will be advance in a correction and should remain within the constraints of the expanding trendlines (grey) that are approximated for reference in the chart.
So far there is no signal for a confident entry and the longer the market consolidates at any level, the more MACD will compress, thereby giving us a signal for entry into decline (or corrective advance).
Bitcoin price has fallen back into a corrective price pattern and may swing profitably as it zig-zags a path toward support nearer $400.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.