Bitcoin Price Range-Bound

Journalist:
May 13, 2016

Bitcoin price has spent the day above $450 (Bitstamp) but the market has not made progress either way. We take a look at the most significant boundaries for this years price action – and the levels that will confirm that a trending move has broken out.

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Bitcoin Price Analysis

Time of analysis: 14h00 UTC

Bitstamp 1-Day Candle Chart

From the analysis pages of xbt.social, earlier today:

Price remains range-bound and there is no new analysis to add to the outlook expressed in previous posts this week.

The general view is that price has steadily printed higher lows during the past six months, yet, has failed to make a new high. The labored progress to the current position of price above $450 has been achieved with low trade volume.

The recommendation remains that traders and investors wait for price to establish above the red resistance zone ($470) before committing to buy positions. Similarly, if price breaks below the rising trendline that has supported the gradual advance, there may be an opportunity to buy bitcoin at discount.

Downside targets include $415 (Bitstamp) – and in case of a spike lower – near $320. Once price does break above resistance, the self-evident upside targets are $500 and $550.

The risk of decline is implied by the 1-day chart where previous MACD states that preceded decline (circled in blue), as well as stochastic indications (similar to the magenta circle) prior to decline resemble the current state of price action.

It could be that the current 1-day indicator similarities to previous instances of decline is a rare anomaly, and that price just gradually keeps trending upwards to dizzy heights. However, technical analysis at the larger timeframes reveals the current risk of, at least, a medium-sized price correction.

Summary

Bitcoin price remains range-bound. Pivots for a directional price move are $470 (Bitstamp) to the upside, and $447 to the downside. A downside move could be swift and presents an opportunity to buy bitcoin at discount. Price may remain range-bound for weeks until such time as the market either forces price through the resistance ceiling, or an external catalyst ignites a rally.

Bitfinex Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin-price chart.

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This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

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.

Last modified (UTC): May 13, 2016 18:42

Venzen Khaosan @venzen

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect. He has found a solution to the PKI mechanism. Email me to discuss.