Bitcoin price continued advance today in a strong surge that hit $360. At the time of writing price is drawing back as the market comes to terms with the day’s price action.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
Price pushed higher in a manner that is characteristic of strong advance. However, initial surges during advance are often deeply retraced. Let’s look at what lies above first.
Assuming that the left-most “initial” wave’s 1.618 target will be achieved we get $400 as a target in the OKCoin 3Mth chart. This level overlaps with the next measurement’s 3.618 level – which increases the likelihood of the target being achieved.
What is odd is that $400 is in between two Fib line levels. Price may hit $400 and then come back down and eventually target the Fib line higher up (circled).
The red Fib line (visible in the top left corner of the chart) has been crisscrossed throughout September, October and November – it is a crucial Fib line – it is bound to be a target if this wave is an advance and not just a correction. It lies at $520 in the OKCoin 3Mth chart.
To the downside price can easily retrace 50% to 80% of the surge. This can place price back at the $340 level. Doing so will not imply a return to decline, until price trades below both the 1-hour 20MA (green) and 200MA (dotted red).
With this being an initial wave of advance, price may still retrace deeply before continuing to higher targets. The advice, as always during advance, is to take part profit at significant levels (such as Fib lines and extension targets) and to then add to you position when price resumes pushing higher in the chart.
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Bitcoin price charts from TradingView.
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