Bitcoin price surprised market participants today by falling away from target and entering a strong decline that brought price below $260 and 1600 CNY to targets identified last week: $240 and 1500 CNY.
From the analysis pages of xbt.social, earlier today:
The decline was signalled by the signature xbt.social MA sell signal and the wave pattern leading up to decline suddenly assumed a familiar shape. At the last minute, the 15-minute chart emitted a sell signal and decline quickly dropped through the previous consolidation level at $260 and 1600 CNY and plummeted to support near $248.
Should a 4-hour candle close near $250 today, it will result in decisive divergence between price and the indicators. This will also be the case at the 1-day timeframe where divergence is indicated by RSI, MACD and the slow stochastic.
One concern is that the 50MA is about to cross below the red 200MA. This is a bearish signal that could see price decline further if the market acts on the signal. Decline below the $250 will open up all kinds of selling behaviour as the MAs follow lower one by one.
If $250 holds at close today, then it may be a while before the MAs achieve the alignment that precedes a strong directional move. For now, let’s see where decline finds support – likely levels are $220 and 1350 CNY.
Bitcoin price decline resumed with a vengeance today, despite many in the market looking for completion of a move to strong targets at $275 and 1700 CNY. By the start of the European session, price began dropping away from its upward-pointing support levels and dropped to $240 and 1500 CNY at the start of the US session.
Bitfinex Buy/Sell volume tells the story:
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Last modified: July 12, 2015 14:43 UTC