Bitcoin Price Sell-Off Approaching $300

By
Venzen Khaosan @venzen
4 years ago

Bitcoin price has been bouncing along the $330 and 2100 CNY level for days. The benefits of bitcoin advance far outweigh those of decline, but a cynical sell-off seems to be opting for the worse of two options.

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Bitcoin Price Analysis

Time of analysis: 15h49 UTC

OKCoin-CNY 15-Minute Chart

From the analysis pages of xbt.social, earlier today:

The OKCoin CNY exchange is visibly leading the decline and its 15-minute chart, above, shows price forming the characteristic cascading arcs, prior to a move lower.

MACD was consolidating to its zero-line with its Bollinger bands constricting – the typical calm before the volatility storm. Both RSI and the stochastics were declining well before the sell-off took hold and were oscillating uncertainly near the middle of their ranges in a narrowing range.

The stochastics failed to reach their upper extreme on two notable occasions – usually a sign that the bears are in control.

The question remains: will this wave decline to the upper target nearer 1950 CNY or to the previous decline low nearer 1860 CNY ($300 Bitstamp)? Truth is, price could continue much lower into December and the new year, but for now it remains a reasonable expectation that the bulls will try to assert themselves at $300, at least.

To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate. – Jesse Livermore

Summary

If the previous resistance at $300 can offer support in the coming weeks, then we have the prospect of continuing advance in 2016. Yet, as markets tend to do, there now seems to be a morbid compulsion to test (and make sure) that a bitcoin is really worth $300. Let’s hope the largest speculators think so.

Bitfinex orderbook depth and Buy/Sell Volume:

Click here for the CCN.LA interactive bitcoin price chart.

What do readers think? Please comment below.

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Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.

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