Bitcoin trading returned price to a sideways path after a short upside burst failed to achieve altitude and fizzled back toward $455.
Time of analysis: 14h00 UTC
From the analysis pages of xbt.social, earlier today:
The market passed the opportunity to advance in bullish chart conditions yesterday, and instead snapped back to the security of the 200-hour moving average (red).
Three weeks after its repeat high at $470 (Bitstamp) resistance the market has made neither a new high or low. The implication is consolidation into the contracting wedge formed by rising support (grey) and overhead resistance (light red zone above price).
With no clear indications as to the direction that the market will eventually choose to break out of the consolidation area, the prudent course of action is to wait for price to establish either above $470 resistance or below rising support.
As discussed during last week’s analysis, there is a risk of price falling to support at $400 or even nearer $300 prior to commencement of a steady rally.
If the market can buy price above $470 then it would have surmounted 6-month long resistance, yet, then, a need for symmetry in the chart could force a large correction from $500.
That bitcoin price will rally in the coming months is not a “maybe”, but to ensure a steady ride to the top it would be good to see price advance from a strong base, rather than the precarious no-new-high strain of the past four months. Let’s remind ourselves that advance is characterized by price making a series of higher lows and higher highs.
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