Bitcoin price slumps toward support – which has held since late-May – although coming under fire twice during the last 24 hours. Additional support awaits just below.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
A price downdraft, today, has pulled price to a supporting trendline (blue) at $454 (Bitstamp). The trendline has a companion in RSI and a break of either should result in the market looking for support at the 4-hour 200-period moving average (200MA, red) currently ascending through $449.
According to the market’s behavior during 2016, so far, price could be bid back up at the 200MA – as happened at the blue arrow during April.
Given the bearish indications in the 1-day and 1-week candle charts that were explored in last week’s analysis, there is also a high probability that the market eventually declines to the grey supporting trendline at $430.
The battle to trade price above resistance at $470 could be resolved via a drop to support followed by an energetic bounce, but the bitcoin market’s capacity for slow torture may see the slow, upward strain continue for several more weeks.
Bitcoin price’s range is narrowing as the market progressively trades price into the high-pressure corner of a contracting wedge. The upper boundary runs horizontally across the past 5 months’ highs near $470 (Bitstamp). Several rising trendlines – some recent and some dating back to April 2013 – provide a support from below. Something has to give, and the technical analysis outlook remains that price will most likely unfold a downward correction before scaling $470 and $500 in the characteristic high-volume, fast-paced bitcoin rally we like to see.
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Last modified (UTC): May 17, 2016 18:08