Bitcoin price picked itself up from the dusty valley floor today. Although it’s looked more healthy, it appears nothing is broken.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
Since yesterday’s low we’ve had 5 waves up. The advance has stopped at 15-minute 200MA (not shown) and is currently trailing the hour 20MA (green). At label 5 the advance is accompanied by reverse divergence in RSI. In other words, RSI is indicating a high exceeding previous highs that price is nowhere near reaching. Hence, the current downward correction.
It seems that at least a temporary low has been struck at $350 and 2350 CNY, and we now remain on the lookout for one of 3 outcomes:
1) Price is supported at yesterday’s low and consolidates sideways before advancing.
2) Price corrects and then continues advancing without consolidating.
3) Price continues decline – with or without additional sideways correction.
The first confirmation of advance will be that price and the 20MA approaches the 1hr 200MA (red). From there we can seek out a Buy signal. If price fails to advance above the overhead Fib line and sells off below the 1hr 20MA then another wave of decline to $320 and 2100 CNY may be in store.
Bitcoin price advanced strongly from yesterday’s low, but the market now seems indecisive. It is uncharacteristic for Bitcoin to decline sharply and then advance without first consolidating. That being said, there have been isolated instances of high energy bounces from a price low, but this does not seem to be one of those cases.
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.