Bitcoin price has held above yesterday’s corrective low. Little upside progress shows the market is now taking a break and perhaps reconsidering the trend.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
The bitcoin price daily charts show an advance that struck out in a straight line from a weak base.
The current high coincides with RSI reverse divergence (magenta annotation) and also a full moon date (tomorrow 23 Feb). Yet, a 1.618 Fibonacci extension gives the wave scope to advance to the December high near $477 in the Bitfinex chart.
Pushing higher above the momentum of an advancing 20MA (green) and 200MA (red), the wave may simply continue on its path if the buyers can just keep returning after each bout of profit taking. If price can make a new high within the next day or two, then the $477 level may be achievable.
Magenta arrows show how previous price waves had advanced above a rising 20MA (green) but had returned to test this moving average prior to embarking on the main wave of advance. The current wave had, to date, failed to do so, and until it does, the advance is over-extended and unstable.
Bitcoin price has lost the steady momentum of the past two weeks. It may return after the market takes a breather. We wait for price to either resume advance, or for a sideways correction to play out. A protracted sideways consolidation could end in a reversion to support at $400.
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Bitcoin price charts from TradingView.
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