Bitcoin price continues trading above $600 and 4,000 CNY across exchanges. Price action and market momentum are slowing, as bitcoin price typically does prior to a strong directional move.
Time of analysis: 12h00 UTC Wednesday
From the analysis pages of xbt.social, earlier today:
Price holds above $600 and 4000 CNY while the 1day and 3day charts remain in bullish mode.
The 1hr and 4hr timeframe charts are not emitting directional signals and we see the 4hr chart, above, holding above $600, above its 200MA and above a horizontal support level (blue) near $590. The longer price can remain above these support levels, the better for the bullsih outlook.
However, a few dips below $600 support may still be needed as the largest timeframe indicators compress prior to a rallying move.
Its difficult to say when the next tradeable price move will occur. If traders resign themselves to wait for a month, the market will, no doubt, surprise by moving earlier. If traders were to start building long positions now, the decision will not be methodical and the market could make one more stop-hunting dip lower before embarking on advance. The right thing to do is to wait for a clear trade signal and at least one confirmation at another timeframe.
Bitcoin price maintains position above $600 and 400 CNY. This is a bullish chart condition but does not preclude a dip lower prior to a new wave of advance. Wait for the bullish chart signals. With trading its better to get in on a move a little late, rather than anticipate the market and position too soon.
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 iStock.