Bitcoin Price Testing Critical Support

Bitcoin price has shown no reaction to yesterday’s Fed rates announcement. Price holds above critical support.

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Bitcoin Price Analysis

Time of analysis: 12h00 UTC Thursday

Bitstamp 1-Hour Candle Chart

From the analysis pages of xbt.social, earlier today:

No visible reaction to the expected Fed rates delay is yet visible in the chart. Gold and the USD forex pairs responded to the news immediately but, as discussed two days ago, the bitcoin market sometimes reacts early, and sometimes late, to emergent new market scenarios.

What the Fed are, essentially, saying by delaying a rate increase is that they have concerns about the strength of the domestic US economy – no change from their previous stance. This can be interpreted as mildly bullish for bitcoin price since it implies ongoing global economic slowdown, continuing US dollar weakness and focus on cash conservation by investors. Hence, bitcoin remains attractive as a store of wealth.

Yet, we know that markets (including bitcoin) do not always react as expected. The speculative aspect of the bitcoin price chart may see it first play out its own internal cycles before it synchronizes to larger economic trends.

If price will advance from the current support near $590 (Bitstamp) then we want to, at least, see the 1hr MACD advance above its zero line (orange arrow).

Summary

Bitcoin price holds above support in the low $590s. If you are still holding a long position be prepared to close it below local support at $590. If you’re not holding an open trade consider staying out of the market until 1hr and then 4hr MACD push above their zero line.

Bitstamp Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin-price chart.

What do readers think? Please comment below.

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Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

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.
Image from iStock/StefanieDegner.

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Venzen Khaosan @venzen

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect. He has found a solution to the PKI mechanism. Email me to discuss.

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