The bitcoin price holds sideways in pattern suggesting advance. Another rewarding week in the market and it does not look like the advance is giving up. Technical analysis finds price targets and risk levels.
Bitcoin Price Analysis
Time of analysis: 13h00 UTC
OKCoin BTC/USD 1-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
During the past 24 hours we've seen price hold above the low established by yesterday's profit-taking sell-off.
The 1hr candle OKCoin BTC/USD chart, above, shows price at the bottom of a rising channel with MACD (just above price) also at the bottom of the range defined by its Bollinger Bands. The implication is that price is now free to advance again. The top of the rising channel, near $820, is an evident target but bitcoin price has shown on many occasions that it can use a narrowing channel as a cannon to blow it into a parabolic price path.
Stupendous advance becomes a reasonable expectation during a bitcoin price rally. Yet, as traders we should always keep healthy account of risk scenarios in the chart. In this case, we see that a break below the lower rising trendline will open decline to the often-mentioned $680 level. This level should offer strong support since it held during several penetration tests around 14 June, and the level is also being bolstered by the 1hr 200-period moving average (200MA, red line circled in red).
xbt.social traders are currently waiting for a specific combination of indicator signals at several timeframes before starting to build their positions for the next wave of advance. The signals occur before every advancing wave in the bitcoin chart and they're so simple that a child can spot them. The secret is not in complex indicators or fundamental insight or even correct prediction - its simply to have the discipline to wait for the simplest signals to invite you to trade the move.
To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate. - Jesse Livermore
Bitcoin price is evidently preparing to move. Weekend trade could see strong directional price action, and two likely levels are explored in the chart analysis above. Advance should make its first stop at $820 (in USD exchanges) and - if a bout of weekend profit taking grips the market - decline should hit a floor at $680. Trade smart: place your bet on the actual move and not on your anticipation of a move.
Bitfinex Depth Chart and Buy/Sell Volume
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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 Shutterstock.