A lull has descended on the market, and various Bitcoin market related data sources seem inactive. This seems to fit with the snail’s pace of sideways Bitcoin price consolidation before an expected move higher.
Excerpt from xbt.social analysis posted earlier:
The 1-hour Bitfinex chart shows price making the same concave envelope in today’s price wave as the larger correction has traced over several weeks. At the time of writing, price is pushing higher by cents and not dollars. In a strange twist, some futures exchanges are not showing new orders or trades in their orderbooks, and Tradingview is not rendering chart indicators to completion.
The failure of price to retest the support floor at $210 or to even touch the lower dotted trendline leaves the wave down unresolved. This is perhaps the very ambiguity we should expect here near the bottom – with uncertainty in the market over whether the consolidation is prior to a rally, or a final drop and then a rally. The passing by of many opportunities in the price chart where a sell-off could have happened during the past week leads us to the conclusion that we are witnessing the end of the end of decline.
Bitcoin Price is consolidating just above $200 in what looks like a slow transition from downtrend to uptrend. The sideways movement in the chart may continue for some time yet, but if price can advance above the overhead descending trendline near $222, we may see strong advance to $260/$270 (1,580 CNY) and, then, the level of the previous high near $320 (1,900). However, the slowdown equally resembles the consolidation that preceded many strong waves of decline during the past year, and for Bitcoin price to complete decline to near $200 would remain within the bounds of consolidation. The view that price will revisit the $160 low cannot be discredited outright, but it seems highly unlikely.
The Bitfinex Buy/Sell Volume is even and evidently turned down to a hush – look at the past hour’s extreme low trade volume.
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Last modified: July 12, 2015 12:37 UTC