Bitcoin Price Pullback, Should Achieve $600

June 4, 2016 17:35 UTC

Bitcoin price retraced all of the advance since yesterday’s post, but a 1-hour chart RSI divergence combination implies another wave to $600 (Bitstamp).

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Bitcoin Price Analysis

Time of analysis: 14h00 UTC

Bitfinex 1-Hour Candle Chart

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

As anticipated yesterday, price had corrected slightly downwards from its price peak, consolidated toward the 1hr 20MA (green) and then advanced toward $600 (Bitstamp).

However, during the course of the day – and prior to achieving the $600 target – a sell-off pulled price back to the 20MA where it is now consolidating.

The combination of two RSI indications implies that price is likely to complete the advance to $600.

As annotated in magenta, today’s new price high had caused RSI divergence, and the subsequent pullback had caused RSI to reverse diverge to the previous price low. Price made a higher low, but RSI made a lower low on the move. This combination is typically a continuation signal, and with $600 just within reach it seems a likely next move. A similar previous instance is annotated in blue.

How much lower price will correct is uncertain – the stochastics (top) have not yet touched their minimum, although full oscillation often does not occur during advance, as can be seen during the advance in the left of the chart.

Summary

Bitcoin price is pushing toward $600 (Bitstamp). The market nervously took proft below $600 earlier today and this may imply a larger bout of profit taking at $600. The rounded, forward leaning slant of the price waves in the chart remains a concern. Perhaps we are only in the initial stages of advance, or perhaps this is only a base wave for advance in August?

Bitfinex Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin-price chart.

What do readers think? Please comment below.

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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.

Last modified: June 4, 2016 17:18 UTC

Posted in: News
@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.

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