Bitcoin Price Intermediate Correction

Journalist:
Venzen Khaosan @venzen
June 10, 2016

Bitcoin price has begun to slowly lose altitude below $580 (Bitstamp). As usual, exuberant buying continues at the wave top, so upward spikes may still form. Analysis looks for the initial confirmation of a downward price correction.

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Bitcoin Price Analysis

Time of analysis: 14h00 UTC

Bitstamp 1-Hour Candle Chart

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

As the OKCoin September futures contract opened today, price surged to near $616 in that chart. Although it was not a new futures high, it does speak of the bullish sentiment of traders with regards to the late-July reward-halving event.

The other exchange charts remained subdued – most of them putting in a lower high for the day.

We now keep an eye on price action in relation to the 1-hour 200MA (red). If trade establishes below this moving average it will confirm a short-term bearish phase, especially if the green 20MA crosses below the 200MA.

For every move up, eventually, there must be a price correction. Downside targets include $540 and $500.

Summary

The bitcoin price chart is rolling over and chart technicals show that we can expect a corrective decline prior to the next major advancing push of this year. Downside targets include $540 and $500, but (given the positive mood and strong fundamentals) a large decline is not expected. Price may still fling out to the upside in buying fake-outs, but rather than anticipate the move down, let the market and moving averages show the way.

Bitfinex Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin-price chart.

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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.

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.