Bitcoin price has come down from a surge high and the market is struggling to find support.
Time of analysis: 12h00 UTC
From the analysis pages of xbt.social, earlier today:
The 4hr BTCC chart shows price heading toward the same red Fib line that we’d been referencing during the base-forming phase of the past few weeks. Potentially price will find support there and head up in another wave of advance.
For confidence in continuing advance, we want to see price advance to a new high. The risk remains a triple top and a breakdown to the downside in the face of uncertainty regarding XT. Going into the 10th and 11th of January there should be some market uncertainty – however faint – about a potential problematic hardfork of the Bitcoin blockchain.
We do not yet have technical evidence of a return to decline. In the 4hr chart, above, price remains above its green 20-period moving average and the 20MA is still advancing. However, the momentum indicators are all pointing down: RSI (immediately above price) has a purple annotation shows the level at which price will reverse diverge from the start of the previous wave of advance. This should cause price reversal back to the upside. A strong layer of support starting at 2870 CNY and $440 – the red 200MA – and bolstered by the ascending red Fib line.
Dropping below the 200MA will be bearish and signify an XT risk sell-off to potential targets at $400 or $300.
Bitcoin price has come down from a price high near 3070 CNY and $465. An immediate prospect is a price bounce at the support layer between $437 and $445. If price bounces, the following prospect is a rally to a potential triple top. Dropping below the 200MA ($437) will be a strongly bearish omen.
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