Bitcoin price quickly returned to its previous consolidation zone during Sunday trade. The verdict in the ongoing case of Bulls vs. Bears remains inconclusive. This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and…
Bitcoin price quickly returned to its previous consolidation zone during Sunday trade. The verdict in the ongoing case of Bulls vs. Bears remains inconclusive.
Time of analysis: 00h00 UTC
From the analysis pages of xbt.social, earlier today:
A swift move higher puts price back in the center of its two-month consolidation zone.
One concern is that today’s advancing wave had gone “too far too fast” and then lost momentum. In the bitcoin chart such a high energy blast – during low weekend liquidity – often results in downward continuation.
A second confirmation that advance could return to decline can be found in the 1-hour RSI indicator’s reverse divergence: the buying spree had caused RSI to form a higher high, while price only made a lower high and did not exceed the previous high near $423. Technically, this phenomenon often results in price falling into a correction. If the direction of trend remains down, then upside reverse divergence (such as we see) typically implies a new price low.
However, if the market has returned to consolidation mode, then price may retrace today’s advance by 30% to 50% before continuing higher. Pushing higher will print a five wave advance from yesterday’s low and will shift the bias to bullish. Although still unconfirmed at this time, a five wave structure in this position of the consolidation pattern since early March will shift interpretation towards a base for advance.
Bitcoin price fulfilled yesterday’s advancing scenario by rapidly returning to above $420. If the bulls can buy price up in another wave, then chart bias will become bullish. For now we have a three wave structure, which is a corrective price pattern. Dropping to a new low from current levels will be medium-term bearish. The coming 24 hours should cast new light on the larger direction of trend.
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Last modified: January 25, 2020 11:17 PM UTC