Bitcoin price is drawing sideways above $410. With plenty of volume – both on the buy and the sell side – we can expect that the market will soon choose a direction. Clear support and resistance close to the area of price will give an early indication of trend.
Time of analysis: 13h00 UTC
From the analysis pages of xbt.social, earlier today:
Interesting price action that has drawn sideways for 24 hours and now attempts to push higher toward resistance. It could be that a complex correction is developing, that could seek to target the long-term resistance ceiling (grey).
Alternatively, we might see price reverse at the dark blue trendline, directly above price action, and then sell off. If we see price push above the blue trendline then additional advance is possible. This is a useful bellwether for the immediate direction of trend. If price falls away from the trendline and below the 4-hour chart’s 200-period moving average (red), then the targets indicated with light-blue arrows open up at $370 and $350 (Bitstamp).
Notice the divergence being signaled in the stochastic indicator (top). This indication typically sees price turn down, but if the market seeks advance it can compound this indication for additional advancing waves. Hence, a cautious eye on the blue trendline and the resistance ceiling at $440.
The bitcoin price chart remains technically bearish, but the market is rearing to make a start on the block-reward halving rally. Let’s see which side of support and resistance price breaks to. To the upside there remains an established resistance ceiling near $440 (Bitstamp), that should see some profit-taking before potential continuation. To the downside
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Bitcoin price charts from TradingView.
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