The declining Bitcoin price wave of the past two days looks incomplete and it has achieved neither a double bottom nor a significant price low to give us confidence that a larger trend reversal is underway. Instead, the market has chosen to trade price higher,…
The declining Bitcoin price wave of the past two days looks incomplete and it has achieved neither a double bottom nor a significant price low to give us confidence that a larger trend reversal is underway. Instead, the market has chosen to trade price higher, but is doing so with little conviction.
From the analysis pages of xbt.social, earlier today:
The scenario that was outlined since the middle of last week now transpires. The lack of a conclusive low has the market trading the price wave higher on a 20MA crossover of the 50MA in the 4-hour chart.
Price has less range in the current area of the chart, so we may see $231 (at the orange 100MA) and – if the move accelerates – a reach to the red 200MA at $235. The equivalent levels for BTC-China are 1440 CNY and 1460 CNY.
Once price reaches the vicinity of the aforementioned levels, reverse divergence to the upside will be overstretched and price will have to correct back to the downside. We’d expect to see a similar reaction as witnessed at the end of May, but it is too early to anticipate such an outcome.
He that can have patience can have what he will. – Benjamin Franklin
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The outlook for additional advance may see these traders generate some good profits and their ability to time their exit and reversal just right will make or break their position in the competition this week. Good luck to all.
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The market is not trading with conviction and both upside and downside moves have lacked momentum for the past week. This is a market condition and fits with the overall view of consolidation that has been suggested for several months. Unless there is some extraneous influence that ramps up volatility, the condition is likely to persist for some time. Sometimes it’s best to simply stay out of the market and wait for an opportunity.
Bitfinex orderbook depth and Buy/Sell Volume:
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The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Last modified: January 25, 2020 11:05 PM UTC