Bitcoin price has made a tentative push higher in a densely packed curved price wave. The market is approaching a reaction zone and the negotiation should determine the next phase of trend.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Increased buying volume during the past several hours is bring price towards its 200-hour moving average (200MA) in the Bitstamp chart.
The 200MA is a critical watershed for trend, and until price has established above it, this may not be the best time to jump into the move.
The stochastics (top) are overbought and diverging (red dots), and RSI is forming massive reverse divergence to price as the RSI indicator pushes above the previous high while price is making much lower high. The implication is reversal back toward support at $435.
The bitcoin price chart tends to defy both rationality and technical indications most of the time, so it is within the realm of possibility that the current wave just continues advancing to the resistance ceiling at $476. It is possible, but not likely, as far as money bets go.
The first level to watch is the 200MA at $446. Price should either reverse back toward $435 from the 200MA, or push above and then retest it for support. In case of the latter, the bulls may be emboldened and start piling in.
Bitcoin price pushes higher into overbought indicator conditions. The sense remains that decline is incomplete and that the current wave is only a corrective advance. However, all bets are off until price has shown a reaction to the 200MA at $446. Above it lies an insecure advance, below it there is only wiggle room down to a rising long-term support currently cutting through $435.
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Bitcoin price charts from TradingView.
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