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.
Time of analysis: 13h00 UTC
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.
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.
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