Bitcoin price is drawing close to its 4hr candle chart 200-period moving average (200MA). Crossing above it will signal an intermediate period of advance.
Bitcoin Price Analysis
Time of analysis: 15h00 UTC Saturday
Bitstamp 4-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
Consolidation is drawing to an inevitable close as the 4hr 200MA descends into the area of price action.
To the upside we have Fib extension targets all the way up to long-term resistance at $680. Likely pitstops for reaction wait at $600, $610 and $630 (Bitstamp).
For the advancing scenario to open we need to see price advance above the 4hr 200MA (red). The 200MA is critical at every timeframe, and intermediate trend is signaled by price’s position relative to this average. Why? No-one knows, it’s just like that.
The imminent breakout is confirmed by many exchange charts entering a “scribbling” phase whereby price candles begin resembling a pencil drawing technique called “hatching” at the 15min and 5min timeframes. Dense candle patterns as opposed to clean distinct wave patterns.
Of course, market manipulation is never far from the cautious trader’s risk assessment plan. Conceivably a cartel of whales may be stimulating advance prior to their wicked action of feeding on these same buy positions. The resulting chart could see price reverse from $600 to $550 and then $500.
Our only guide through the many possible scenarios is the chart’s technical indications. If momentum to the upside is strong, it will discourage manipulation, and we expect to see confirmation of advance in the 1day chart, which currently does not (yet) signal long-term advance.
The analysis outlook is for price to climb above its 4hr 200MA in the coming days. Above that, obstacles lie at $600, $630 and, finally, $680. Prudent traders should wait for $600 to be conquered before betting on the upside.
Bitstamp Depth Chart and Buy/Sell Volume
A lot of sick individuals ambushing advance overhead. They either know something we don’t or they’re the usual crowd that fumble into selling at long-term market lows.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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