Bitcoin price has been traded up in a mild fever during the latter part of today’s market action. Is this a good place to join a potential uptrend? The chart technicals don’t suggest ongoing advance into a profitable advance.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Bitcoin price is hovering close to its local consolidation level near $650-$640 as it is drawn to a trendline apex at 25 July.
Overhead, are the 200MA (red) and the $680 resistance layer. Buyers could pile in and surmount both these levels, but doing so too quickly creates the risk of profit-taking drawing price lower.
The stochastics (top) have fallen away from their overbought grouping and will seek to group at minimum before a surge can lift price out of the consolidation zone. At least, this is pattern evident in the chart and it does not preclude an upside breakout, but this outcome seems unlikely.
Until we see price established above $680 and the overhead magenta trendline, there is no compelling reason to believe that advance is safe to trade.
Bitcoin price has declined back toward its consolidation level after a false start to the upside. Yet, we see price holding above a rising trendline today, and there is some hope that gradual advance is underway. However, until traders see a new high above $680 and the layers of recent resistance broken, it is safest to assume that advance is still building pressure.
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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