Bitcoin price is hitting upside resistance and the sense is that bitcoin wants to follow its primary valuator – the US dollar – in a rally. There is reason to refrain from trading right now, as the chart technicals show risk to the upside.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Price launched higher, today, but hit an overhead resistance layer that has seen two recent reversals. This has been the reason for no xbt.social Trade Recommendation being issued yet – the market should first resolve this area of contention before price can proceed.
The 4-hour BTCC chart shows the indicator dynamics at this level. Notice that the momentum indicators are drawing to their oversold indication on the recent pushes higher.
We have plenty of time to get a reliable and clear signal. If price were to just advance above this resistance layer today, there are still question marks whether to enter only based on a new high. The indicator divergence on such a move will be strong and therefore make it dangerous to enter. Price may come right back to test this resistance-turned-support.
Difficult as it may be, we might have to sacrifice some upside before we can safely enter. Patience, the market gives and the market takes away. After our recent trading successes, now is the time to just hold onto profits and allow the market to expend its current irrational energy.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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