The bitcoin price chart remains in slumping mode and continuing decline is inevitable, yet, interspersed with crosscurrents. Best to sit out until a clear signal becomes evident in the charts.
Time of analysis: 13h00 UTC
From the analysis pages of xbt.social, earlier today:
Price is likely to oscillate within the range of the past few days before a definitive signal manifests in the chart.
Notice in the 4hr chart, above, that price remains below the 20MA (green). There is little techincal resistance to continuing decline, but we remain cautious of a bullish stampede higher, prior to such decline.
It would be plain contrary to say Brexit had nothing to do with the market fluctuations we saw on Friday, but certainly not in the direct causal manner most commentators are implying. Market participants were waiting for a catalyst to sell stocks and buy safehaven assets. Both gold and bitcoin have stopped advancing, and that begs the question: “Why? Because there are no new Brexit buyers and Brexit fears have blown over?” The answer is more straight forward – same as it’s been since the beginning of markets: Speculators buy and sell, and use news events, irrespective of their content, as catalysts to do what they were going to do anyway.
As always the policy remains to only bet on rain, not when we see clouds, but when we see the first drops falling. Wait for the indicators – moving averages, RSI, MACD and stochastics – to confirm the move at various timeframes before risking your precious bitcoin funds on the high seas of the open market.
Bitcoin price remains below the 1-day chart’s 20MA, and speculators should consider keeping funds allocation at 40:60 BTC vs fiat until we see a confirmation of a return to uptrend. Margin traders should remain patient for the indicators to shout a signal, across timeframes, before commiting to a position. What goes up must come down.
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Bitcoin price charts from TradingView.
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