A small energetic bitcoin price wave has developed to the upside in today’s chart. It initially appeared to be an upward correction prior to the next wave down, however, its angle of ascent is more characteristic of advance.
From the analysis pages of xbt.social, earlier today:
Scanning the chart one cannot help but notice similar price patterns, to the current advance and MA configuration, as seen before in the chart – circled in magenta.
It has been proposed that this could be a large bottoming pattern on top of support, and if we go up again in a similar ABC, then we could have reason to suspect the lows have been struck.
If this is merely a small upward correction that is passing time until the faster MAs join with the 15-minute 200MA for a plunge lower, then we’ll see a sell signal developing in the 15-minute chart.
Later in the day:
Seen here in the Bitfinex 15-minute chart, the advancing wave is pushing through divergence above the 200MA. It may soon have to correct, and then we’ll see if it resembles the price patterns identified in the previous update’s chart.
There is a buy signal in the 15-minute chart, but it was not preceded by a consolidation, so we had no way of anticipating it for the purpose of drafting a Trade Recommendation. Even if we had been speedy to identify the opportunity and trade the MA buy signal, it only yielded a price distance of $4 and is best discarded.
At least one xbt.social analyst sees more decline in the chart:
The two most powerful warriors are patience and time. – Leo Tolstoy
Bitcoin price looks like it is unfolding the next large corrective pattern here near the support floor at $210. Now that price is above the 200MA and likely to pull back in consolidation; we may get a clear buy signal in the chart within the next 12-24 hours.
Bitfinex orderbook depth and buy/sell volume for the past day and the past hour:
What do readers think? Please comment below.
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The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Last modified: July 12, 2015 18:54 UTC