Bitcoin price continues declining and we have to ask “why”? Unfavorable news? Bad fundamentals? Truth is: neither – commodities rise and fall due to leveraged speculation in their price charts.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Bitcoin price is at a strange juncture: the 4-hour and 1-day timeframes are about to enter a bearish technical condition, yet, a large hand in the market could miraculously find support at current levels.
The technical factor that implies that the largest players in the market are interested in decline, is the fact that they have not defended the ascending trendline (blue) that would have secured another wave higher.
It may still, magically, transpire, but if the 4-hour and 1-day charts turn bearish (according to xbt.social indicators) in the coming days, we may be facing a substantial decline: primary target $600 (Bitstamp) and 4000 (BTCC); secondary target at the previous decline low of $560.
Buyers are piling in – its a new low, right? – but a departing tide lowers all boats. We may get a month-end discount buying opportunity – the retail bulls are, apparently, all-in and without reserves.
Bitcoin price declines and the technical indications favoring selling escalate. This happens toward the end of every meaningful correction, so don’t change horses in the middle of the stream just yet. $650 (Bitstamp) is critical, followed by $600.
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Bitcoin price charts from TradingView.
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