Bitcoin price made reentry last night and bounced at $300 and 1800 CNY after trading at almost double those prices less than a week ago. How low could it go?
Time of analysis: 15h27 UTC
From the analysis pages of xbt.social, earlier today:
A massive move lower came as a shock – not because it declined – but because it did so without clear signaling in the chart – preventing us from taking advantage of the bulk of the decline.
1) A corrective instance on the left (magenta annotation on price and RSI, just above price) had made a higher low while RSI was reverse diverging. The present correction did the same, but just pushed lower regardless – most probably because it is a larger degree wave and playing out at the 4hr timeframe and not the 1hr chart indicators timeframe.
2) Once CNY prices dropped below the level of the 1day 20MA – the fate of the decline was sealed.
3) $300 and 1800 CNY have provided support today. Price had found support at two horizontal support & resistance levels, although (at the time of writing) price is trading below the 4-hour 200MA (red).
If horizontal support were to hold and price begins advancing soon, it would either be to correct the decline, thus far, or it may be a new wave of advance to the upside.
Advance from the current lows would be a welcome surprise after a year spent mostly below $250. If the current support level were to give way and price falls below $300 and 1870 CNY, then the lower horizontal support & resistance in the chart above would present a target as well as all those levels we have become so well-acquainted with during 2015: $280, $260, $240 and $220 at the support floor.
For now there is no clear technical indication of which way the market is likely to take this. Let’s hope $300 holds.
Bitfinex orderbook depth and Buy/Sell Volume:
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