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…
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.
Time of analysis: 14h00 UTC
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.
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.
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Last modified: January 3, 2020 3:46 PM UTC