Bitcoin price continues trading above support as 4,000 CNY and $600 holds. Slowing price action implies an imminent ramp-up in volatility, yet technical analysis suggests traders wait for additional consolidation.
Time of analysis: 12h00 UTC Thursday
From the analysis pages of xbt.social, earlier today:
A bullish price pattern in the 1hr chart may be setting up a surge, however, a look at the 1day chart (above) shows that the indicators are not typically aligned for a strong wave of advance.
Horizontal bars show the indicator configuration typically seen at the start of large waves of advance: price is above its 1day 200MA (red). Notice the position of MACD above its zero line in each case, as well as the fact that the stochastics had usually grouped at zero prior to the advance.
Currently, we see MACD above zero and price holding above its 200MA which does favor advance. However, the stochastics are still descending.
Although we currently have an apparent bullish configuration at all timeframes, the condition of the 1day and 4hr stochastics should warn traders to stay on the sideline and remain patient.
Bitcoin price maintains position above $600 and 400 CNY. This is a bullish chart condition but does not preclude a dip lower prior to a new wave of advance. Wait for the bullish chart signals. Better to get in on a confirmed move a little late, rather than risk money too soon.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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