The bitcoin price ship again scraped its hull against something in the mid-$430s (Bitstamp). Evidently, there was no damage, yet the wind is just not billowing the sails.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Price remains above the long-term support that currently runs through $434 (Bitstamp).
Yesterday’s declining wave had tested the support and managed a bounce that gapped above the 20-period moving average in the 1hr chart. Unless there is a determined selling spree in the market, the support level may continue rejecting attempts to pull price lower.
Despite large buy orders appearing in the orderbooks – many of which may be orders closing short positions – there is not yet any concerted move away from this precarious lower boundary. Price corrections at such junctures sometimes become drawn-out and complex.
For now we can only see the 1-hour indicators becoming overbought, and we await additional price action. A move higher won’t surprize, but given the awkward pattern since the low it will most probably be a corrective advance without any technical justification for trade.
Bitcoin price retested long-term support overnight but has failed to push away from the shores of $440. If the market can hold above this price level, then a return to the high seas may be possible, but lack of volume implies the bitcoin price ship is drifting rudderless – and doing so above a reef.
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Bitcoin price charts from TradingView.
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Last modified (UTC): May 23, 2016 17:12