A weak MA buy signal formed in the 15-minute and 1-hour Bitcoin price charts earlier today but traders did not take the bait. The market evidently lacked the motivation to trade price higher and tipped into an inevitable decline instead. This analysis is provided by…
A weak MA buy signal formed in the 15-minute and 1-hour Bitcoin price charts earlier today but traders did not take the bait. The market evidently lacked the motivation to trade price higher and tipped into an inevitable decline instead.
Time of analysis: 16h53 UTC
From the analysis pages of xbt.social, earlier today:
Elliott Wave analysis of the current wave down identified, on Monday, that the decline was incomplete. As pointed out previously, a five wave sequence (as the current wave C should be) makes a MACD extreme at the end of wave iii (circled in magenta). This is how we knew that we could expect one more low for the present wave.
Ultimately, we wait for the market to conclude the present declining wave with either a double bottom near $220 or with a drop to the support levels at $215, $210 and (at an unlikely extreme) $200.
Daily Average True Range (ATR) has fallen to a multi-year low and that implies slowing price action with little chart movement until price comes to a virtual standstill and a sudden onset of volatility explodes price action – to the upside, if our combined analyses are correct.
The upside is still capped near $240 / 1500 CNY (level of the 4hr 800MA), but eventually price will want to rejoin its daily 200MA at $270 and 1650 CNY.
The price pattern reminds you that every movement of importance is but a repetition of similar price movements. – Jesse Livermore
Boem! and kaymuddin drop lower down the leaderboard holding long positions as Winner and Radena move into second and third place with short positions.
Siexpert, our CoinCompetition leader for the past 5 days, has chosen a strange cash allocation with just under half of his account converted to USD and the rest to BTC. In a falling Bitcoin market, it is best to hold all USD since the value (and buying power) of any bitcoin holdings decreases as the market declines. Wherever the bottom is found, you’d then have to wait for the Bitcoin price to return to the level where you converted to BTC before you break even and regain the value of those bitcoins.
The next weekly round of CoinCompetition starts tomorrow, 8 June, and if a decline low for the current wave is struck within the next 12 hours then the coming week may see some exciting trade in an advancing market.
Join CoinCompetition and win bitcoins. Next weekly round starts June 8th. Winner: 1 BTC, Runner-Up: 0.25 BTC
Bitcoin price is looking for a bottom at the lower end of a multi-month consolidation range. Today may see the market form a double bottom near $220 or find a low at support near $215 or $210.
Bitfinex orderbook depth shows buyers camping at support levels $215 and $210 while sellers (or is that one seller?) stand ready to sell any attempt at advance toward $225.
What do readers think? Please comment below.
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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 11:05 PM UTC