Bitcoin price is picking up the pace and has covered almost $20 in some exchange charts. Fibonacci ratio targeting shows there is at least another $20 of upside in the tank.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
A 1-hour timeframe chart, on the left, and a view of the most recent advancing wave in the 5-minute timeframe chart, on the right.
The 5-minute chart shows price currently correcting before making the next wave to the upside.
The trajectory of the advance, as seen in the 1-hour chart seems to be a straight line, and it is usual for bitcoin price to accelerate into the final fifth wave of advance. We could, therefore, expect to see price go vertical which will be both the hallmark of the fifth wave, as well as our signal to expect a top for the price wave that started below $400.
The top may be some distance higher in the chart, with Fib extensions indicating $460 and $470 as likely targets – coincidentally, at the level of the December and January highs.
What happens after that will be interesting. Typically, the bitcoin chart retraces at least 50% of a price move, but in the current 1-day chart (not shown) we see a significant xbt.social buy signal forming. So, either price will form a shallow retracement of the advance to date, or the chart may make the expected 50% retracement very rapidly before turning back up.
Bitcoin price is accelerating to the upside in a manner that frequently results in a price spike. According to two evident Fibonacci extension projections the wave top should form around the December and January highs, although the spike may extend much higher. Tomorrow’s analysis will consider the 1-day chart and the longer-term outlook.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.