Bitcoin price, over the weekend, unfolded five declining subwaves and should now advance. The prevailing pattern of price shows similarities to a pattern at the end of January (prior to consolidation) and another in mid-February (prior to advance). This analysis is provided by xbt.social with…
Bitcoin price, over the weekend, unfolded five declining subwaves and should now advance. The prevailing pattern of price shows similarities to a pattern at the end of January (prior to consolidation) and another in mid-February (prior to advance).
Time of analysis: 04h45 UTC
From the analysis pages of xbt.social, earlier today:
Bitcoin price has made five declining subwaves and should now advance.
Advancing in 5 waves to the purple 800MA near $286 will be a sign that a new advance has begun.
Three waves of advance that fall short of the 800MA will warn us that the current sideways structure is incomplete or that decline may resume.
Of great interest this morning, is the collapse in the price of Gold, Silver and Platinum.
At the market open the Gold price plummeted more than $40 before pulling back above $1100. The implications of this Precious Metals rout will be explored in today’s Global Economic Outlook on CCN.LA.
The mainstream media is attributing the drop in the Gold price to hints given by Fed Chair Janet Yellen that the Fed is ready to raise guidance rates in the US. Strong Housing and CPI figures released on Friday plays into the Fed’s conditions for a rates hike. Correlation between this data release and the Gold sell-off is certainly there. However, bear in mind the position always being offered here, namely, that news does not cause market movement but, rather, acts as a catalyst for what the market was looking to do anyway. The distinction is subtle but insightful once grasped.
Why the market has gradually been selling off Gold for the past 4 years, is an interesting question, that will be explored in a separate article. Members’ thoughts are welcome.
I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have. – Paul Tudor Jones
As always, there are several paths the market may follow from the present price level just above the 1-day 20-period moving average. The structure and pattern of the current advancing wave will reveal whether the decline is complete or whether more downside is in store. To the upside $290 should be its target. Failure to achieve this will show lack of motivation in market psychology and most likely result in a sideways consolidation. A breach of $275 (Bitsamp) to the downside opens up $250. This analyst’s bias is to the upside and for consolidation prior to another rally.
Bitfinex orderbook depth and Buy/Sell Volume:
What do readers think? Please comment below.
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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.
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Last modified: January 25, 2020 11:07 PM UTC