Bitcoin price was traded to a new recovery high on Tuesday and has since retraced just under 50% of the price move. The current chart shows that the downside may be incomplete but with indecision at the current juncture. This analysis is provided by xbt.social…
Bitcoin price was traded to a new recovery high on Tuesday and has since retraced just under 50% of the price move. The current chart shows that the downside may be incomplete but with indecision at the current juncture.
Time of analysis: 16h16 UTC
From the analysis pages of xbt.social, earlier today:
Today’s update was delayed for as long as possible, firstly, to see if price will bounce at the Fib line, and then, when it pulled below, to see if it the market will attempt to quickly regain the lost ground.
Currently, the price is trying to get above the Fib line but is trading just below this critical technical support. The 15-minute chart (above) appears to be in advanced stages of divergence to the downside, and the 1-hour chart has also diverged to an extreme. Price has now, in all but the RSI indicator (second from top), giving momentum readings below the momentum readings at the start of advance (not shown above). This introduces a bullish bias to the chart, and we can start looking for signs of reversal to the upside (if the price can establish above the Fib line).
We do not yet have a buy signal and with five waves down, we might expect another corrective wave (with three subwaves) to the upside (but not to a new high) followed by a final corrective wave to the downside. This could take some time, but let’s see if any good reason to trade to the upside emerges in the coming 24 hours.
To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate. – Jesse Livermore
Closer to the price action in a 15-minute chart, we see the divergence that formed on the last low, but that price is now trading below the Fib line and, significantly, below the red 200-period moving average. Traders should not yet take a position to any side. The market may try to resolve the current impasse before choosing a side.
Bitfinex orderbook depth and Buy/Sell Volume:
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Last modified: January 25, 2020 11:14 PM UTC