Bitcoin price found support at the base of the previous advance and surged to the upside during Sunday trade.
Bitcoin Price Analysis
Time of analysis: 14h00 UTC
BTCC 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Bitcoin price formed a typical base for advance above the support layer near $380 and 2500 CNY.
By 08h00 UTC the range of price movement had compressed and MACD (top) had consolidated to its zero line as it usually does prior to a surge.
The break to the upside quickly caused 1-hour RSI to reverse diverge to the previous wave top (magenta annotation) and this has forced a correction at the 1.618 Fib extension (not shown) of the base wave.
Once the correction has played out, we’d expect to see price push to new highs. As always, there is a risk that the move higher is merely a fake-out, but in this case the probability of upward continuation is bolstered by price trading above both its 20MA (green) and 200MA (red).
Bitcoin price had been testing the $380/$375 and 2500 CNY level for support, found it, and surged higher. A correction near $400 and $2650, once complete, should see price pushing toward initial targets at $414 and $2720.
Bitfinex Depth Chart and Buy/Sell Volume
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.