The Bitcoin price correction from the recent high continues and may not yield the quick return to advance we’ve seen during the past three days. The larger degree correction seems to require more time (as opposed to greater retracement depth) before another leg of advance can begin.
Bitcoin Price Analysis
Bitfinex 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The move down from the high appears to be an ABC correction that is looking for support before moving higher. If the support has already been found then it may be a case that the corrective structure wants to unfold additional subwaves as a means of passing time as the market comes to terms with the implications of the end of decline. In this case, we may see sideways price action slowly transforming into gradual advance during the coming days.
To make sense of the wave action, a wave count of 12345 to the high implies that the wave degree of the current corrective wave is one degree larger than the preceding five waves’ degree. The correction is, therefore, more drawn out and has larger subwaves. The final subwave may also develop its own five subwaves. Notice that there is clear divergence in MACD and RSI. The larger wave degree might require compound divergence to indicate its end.
The next wave to the upside should give a definitive xbt.social Buy Signal. So, until we see the lagging indicator compression and alignment we know to herald advance, there is not much else to do but wait.
Bitcoin price is still gearing up for the move to $300 but is unfolding a larger correction before doing so.. A major concern leading up to this retracement had been “What will happen at $300 and 1850 CNY?”. The wider market was evidently wondering about the same thing and cautiously pulled out of their trades before the targets were even touched. Best to wait for a buy signal in the intra-day charts before entering any long positions at this time.
The Bitfinex depth chart has strong buy order support at $260.
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The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.