Bitcoin price has held support and advanced on $600 and 4,000 CNY earlier today. However, the bear is not yet out of the woods.
Time of analysis: 12h00 UTC Friday
From the analysis pages of xbt.social, earlier today:
The USD exchanges are attempting $600 while the CNY exchanges try to retake 4,000 CNY. This is encouraging since we’ve seen price hold above its critical 1day 50MA and now trying to reestablish above psychological support.
A bullish 1hr 20/50MA cross-over (chart right) was confirmed by a simultaneous full valid 15min MA signal a few hours ago – another encouraging sign that the market is trying to return to advance.
However, the journey to the upside is not going to be plain sailing and traders should wait for additional confirmation in the 1hr and 4hr timeframes: notice that the 1hr stochastics (magenta circle, top) are flashing red divergence dots, thereby, implying another correction below $600.
MACD is not above its zero line (orange circle) – an additional indication advising patience before trading long.
Bitcoin price has held support (blue horizontal line) and, today, reattempted $600. Traders shjould wait for price to reestablish above the $600 “psych” level, as well as 1hr and 4hr MACD to advance above zero before considering a buy position.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
Image from iStock/Derwood Photography
Last modified (UTC): September 23, 2016 18:00