The multi-day downside reverse divergence highlighted in yesterday’s analysis won out, and a Bitcoin price corrective wave low was struck. Price has now advanced impulsively above both the 1-hour and 4-hour 200MAs and the outlook is very bullish, but a consolidation below $240 and 1480…
The multi-day downside reverse divergence highlighted in yesterday’s analysis won out, and a Bitcoin price corrective wave low was struck. Price has now advanced impulsively above both the 1-hour and 4-hour 200MAs and the outlook is very bullish, but a consolidation below $240 and 1480 CNY has the market in two minds.
From the analysis pages of xbt.social, earlier today:
We would expect the current consolidation (in wave 2) to resemble the previous wave 2 consolidation of early May. The subsequent wave 3 to the upside should be furious and achieve a good distance into the chart.
An alternate view of wave development is that this is only wave A of wave 1 to the upside, in which case another stronger advancing wave will surge to the upside unannounced. It will be difficult to get in on such a surge if it does not consolidate sufficiently to produce a buy signal. If this is wave 1, as labeled, then the consolidation should draw out for most of the day.
Dropping back below the 200MA would return our outlook to consolidation at the lower support level near $220.
We remain focused on the moving averages; that will align to give us a buy signal as the consolidation completes and a new wave A-B combination heralds advance.
Thanks to xbt.social member, T, for the following breaking story this morning:
The image above is a direct link to the CNBC ‘s Twitter feed where the article was first announced. Some traders (and non-traders) feel that news – and its subjective positivity/negativity – moves price up/down accordingly. What do you think? Reader opinions are welcome.
Some familiar names remain on the leaderboard, and some new arrivals deserve a mention. bitmaster30 has shot into the lead, and in 10th position another new entrant, Boem, has clocked up 38% profit with one batch of buy orders. Holding position in a trade competition is not easy because of the pressure to always be in position, in case of a price movement. Get your direction wrong and all of those hard won profits are rapidly depleted – not only are you losing money, but competitors are generating profits while you’re busy salvaging a losing position.
There will still be more new entrants who will shoot into the rankings on well-timed trades, but over time a few long-term players will begin to dominate and their skill (and luck) will make for an exciting last two weeks of competition.
Join CoinCompetition today and win 5 bitcoins. New entrants welcome.
Bitcoin price has been trading sideways for most of today after a strong surge from yesterday’s low. The gradual push higher during the past few hours presents traders with a dilemma: will price gain momentum to the upside or is this a B wave doomed to drop lower? No forecast is offered – we’ll let the CoinCompetition traders decide!
Bitfinex Buy/Sell Volume:
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.
The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Last modified: January 25, 2020 11:06 PM UTC