Bitcoin trading pushed price to a potential breakout, overnight, but failed to advance price above critical resistance. A potential tipping point into further decline awaits below – can the bulls get it together to re-ignite the rally?
Time of analysis: 15h59 UTC
From the analysis pages of xbt.social, earlier today:
Price remains capped, overhead, by the 4-hour green 20-period moving average (20MA).
The market let pass an opportunity, earlier in the day, to break above the 20MA into the clear indicator space to $400 and 2600 CNY.
Meanwhile the 200MA (red) lies close below and the 20MA is approaching it at a fairly steep angle of decent. Remaining below the 20MA, price could soon get sucked under the 200MA as the 20MA makes a bearish cross-over to below it. In this case the pale red area defines the area of declining price action.
Conceivably, the buyers could get the upperhand in the coming days and push price above the declining 20MA. With enough upward momentum in price, the 20MA would turn back up, and with price above both the 20MA and 200MA in the 4-hour chart, at least a temporary bullish condition would prevail. The upper bound of the upward wave is annotated in pale green – to $400 and 2600 CNY.
Best to wait for the market to show the way before anticipating the move.
Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected. – George Soros
Additional decline will be unfortunate, since the chart area below $300 is a quagmire of obstacles and price sinks. Return to advance is what most speculators and Bitcoin users want to see, but whether the upside wave will be merely a correction prior to decline or a resumption of advance will depend on price continuing the upward race above the area of the green rectangle’s resistance level.
Bitfinex orderbook depth and Buy/Sell Volume:
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