Bitcoin Trading Hammering Downside Support

Journalist:
February 23, 2015

Bitcoin trading has reverted to selling behavior, and the bears are clawing down the chart for all they’re worth. Buyers have set up strong buy orders between $225 and $237 but the past 24 hours of decline have relentlessly eaten into these. Will support at $230 hold?

This analysis is provided by xbt.social with a 3 hour delay. Read the full analysis here.

Bitcoin Trading and Price Analysis


Time of analysis: 13h26 UTC

Bitfinex 15-Minute Chart

From xbt.social analysis earlier today:

Sellers are hammering support and lower down could be on the cards. However, the present wave down lacks the momentum of yesterday’s wave 3.

The Fib line at $232 is providing support, but the question is if it will hold. For now we assume it does. The wave down seems to have an outstanding wave 5 of decline and it could sink price anywhere to $230 and $220 if support breaks. If support holds, we expect price to trade back above $237 and 1473 CNY in a relief rally.

Summary

Bitcoin Trading has fallen to old habits and may find out, this time, that the elevator has already reached the ground floor. Strong technical support lies between $230 and $237 (1450 CNY) and buy orders wait below that. If support holds expect a relief rally. If it fails, well, it’s back to $210, consolidation and to start the advancing wave cycle all over again.

The Bitfinex depth chart shows few buy orders to $230, making the bears’ task easy, since buying only becomes stronger towards $225. The orderbook shows pre-existing limit orders, remember that buyers may come in with market (and hidden) orders.

Click here for the CCN interactive price chart.

What do readers think? Please comment below.

This analysis is provided by xbt.social with a 3 hour delay. Read the full analysis here.

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Disclaimer

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.

Bitcoin price charts from TradingView.
Images from Shutterstock.

Last modified (UTC): July 12, 2015 12:40

Venzen Khaosan @venzen

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect. He has found a solution to the PKI mechanism. Email me to discuss.