Bitcoin Price continues moving in a narrow range in indecisive trade. Today's analysis is presented during early Asian session market activity and will be updated during the US session in case of any notable chart activity. Time of analysis: 03h00 UTC Bitcoin Price Analysis Readers,…
Readers, I have an all-day commitment and present this analysis during the Asian morning. I will be back at my desk during the US session and will update the analysis then if necessary.
A quick look at the depth charts of BTC-China (left), Bitfinex (center) and BTC-e (right) reveals the low order volumes in the active range and also where significant larger amounts of orders are grouped near $300 and 1,910 CNY:
The reverse divergence between price and RSI that had manifested yesterday is annotated in magenta. Price has not yet yielded to the downward move this divergence enforces and is defiantly drawing sideways for the time being.
Two other indications stand out on both the Bitstamp and BTC-China charts:
1. The Bollinger Bands on MACD are contracting during low volatility and narrow price range. It implies that volatility must soon ramp up.
2. Price is grinding down on rising support, but there is no sign that price is impulsively heading for the red 200MA far above it.
Combining all the signs above we come to the same conclusion that has been offered here for the past week: Trade is muted, price movement is indecisive and it is not a time to be in the market or place trades in the hope of anticipating the next move. For now, it is best to be like a crocodile: lie in the shallows prepared to seize a high gain, low-risk opportunity when the market presents it.
Yesterday’s 4-hour chart analysis of a significant reverse divergence between price and RSI still holds. In the coming sessions, today and over the weekend, price may move higher (into the $320’s and low 2,000 CNY) before yielding to the reverse divergence pull lower toward $300 and 1,900 CNY.
Action: None. Attitude: Patient readiness.
Bitfinex Buy/Sell Volume confirms the notion that market participants are skittish and indecisive. Today’s hourly/24-hourly comparison is the opposite of yesterday’s – with no change in the price chart.
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Last modified: January 3, 2020 3:29 PM UTC