Bitcoin price has found structural support in the chart and has started a tentative (but uncertain) advance. Caution into year-end.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
Price seems to have found support near $400 and 2600 CNY and has been making slow but steady advance in a pattern that is not yet clearly impulsive. It may still be a correction before drawing sideways or even setting up additional decline.
Assuming for now that the decline is complete, and seeing that price is advancing, there is an imminent reverse divergence (magenta) to both the 1hr MACD and RSI awaiting price if it advances higher in the chart.
If this is indeed a resumption of advance then we should get a buy signal once price corrects the reverse divergence. If not, then additional decline or at least a return to the current low may print. Dropping below $400 will erase any hopes of advance resuming any time before the end of next week.
The year-end correction was strong but soon found technical support. While we may not yet have seen the final low, there is no evident reason for the market to engage in persistent selling. The prospects for Bitcoin have neven looked better and 2016 is certain to see some spectacular highs. In the meantime we wait for the best trades.
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Bitcoin price charts from TradingView.
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