Bitcoin price pushed higher from the horizontal support zone near $660. The outlook remains that the market is engaged in a sideways base formation prior to advance.
Time of analysis: 15h00 UTC Monday
From the analysis pages of xbt.social, earlier today:
A push higher, today, from the horizontal support in the low $560s.
The 4hr chart indicates ongoing consolidation, with MACD compressing and the stochastics (top) very quickly pushing back toward their maximum.
We expect price to continue drawing sideways as the 4hr 200MA descends into the area of price – then the surge higher toward $600 and a larger advance – hopefully in the coming days.
Price remains above its 1day 200MA and the 1day MACD has pulled out of its steep dive.
Notice the advancing stochastics, top right. xbt.social’s Buy recommendation remains valid and we wait to see advance above $600 (Bitstamp) – or another confirmed buy signal in at least two other timeframes.
A drop to $550 could be the final low of this consolidation, but below $550 the market may sell off to $500. Wait for advance above $600 to confirm an uptrend.
If the market can keep price above $550 support we may be looking at the formation of a base pattern prior to an advance toward $680. The smart strategy in the current chart is to wait for price to advance above $600, since that will open the way to $680, while allowing the market to go through the motions if it is indeed building a base pattern for advance.
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Bitcoin price charts from TradingView.
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