Bitcoin Price Meandering Above $450

Journalist:
May 18, 2016

Bitcoin price meanders – seemingly without aim – as volume continues shrinking. Markets sometimes experience the doldrums and this seems to be it. Remain focused, however, since such periods typically precede sudden large moves.

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Bitcoin Price Analysis

Time of analysis: 13h00 UTC

Bitstamp 1-Hour Candle Chart

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

Bitcoin price continues dithering above $450 (Bitstamp) as the larger timeframes (1-week, 1-day) lose upward momentum.

Price has spent the past 3 weeks contracting in range while forming higher lows and lower highs.

The long-term prospect remains for advance, and the intermediate outlook for decline to support – especially, given the slumping 1-day indicators.

In the meantime, we wait for the market to doodle out its lack of conviction between seemingly unsurmountable upside resistance at $470 and rising support now cutting through $450.

Summary

Bitcoin price’s range continues narrowing as the market progressively trades price into the high-pressure corner of a contracting wedge. The upper boundary runs horizontally across the past 5 months’ highs near $470 (Bitstamp). Several rising trendlines – some recent and some dating back to April 2013 – provide a support from below. The technical analysis outlook remains that price will most likely unfold a downward correction before scaling $470 and $500 in the characteristic high-volume, fast-paced bitcoin rally the market likes to see.

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.