Bitcoin Price Sailing A Shallow Sea

Journalist:
May 23, 2016

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.

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Bitcoin Price Analysis

Time of analysis: 14h00 UTC

Bitstamp 1-Hour Candle Chart

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.

Summary

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.

Bitfinex Depth Chart 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 of Uncharted 4 from SomosPlaystation.

Last modified (UTC): May 23, 2016 17:12

Venzen Khaosan @venzen

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect. He has found a solution to the PKI mechanism. Email me to discuss.