Bitcoin trading is holding to a straight and narrow price path. There have been no significant new highs or lows, and we wait for a more confident mood to set traders in a direction.
Time of analysis: 14h30 UTC
From the analysis pages of xbt.social, earlier today:
The most obvious feature of the current chart is that trade is swinging price around the ascending red Fib line. Buyers have quickly pushed price above the Fib line on each occasion that it had fallen below.
If the bulls capitulate and buy price higher from its current position at the Fib line, then they will strengthen the chart for continuing advance. If price returns below the Fib line then we may be in for additional lows and a retest of $420 and 2715 CNY.
The move lower (since the 1st of January) was heralded by indications that announced the move: Volume in the 1hr chart was falling on each new high, and RSI (1hr) was similarly making lower highs on each new price high (regular divergence).
Today’s push higher shows reverse divergence in the 1hr RSI – price has only made a lower high but RSI had advanced to the level of the previous high (magenta annotation).
Let’s see what the market will do with price in relation to the red Fib line. Our Buy TR remains in Pending state until its conditions are fulfilled.
Price corrections, such as we’ve seen for the past two weeks, feature regular price reversals. Although the market is in a bullish mood, with participants buying in large amounts, confident and persistent buying is not manifesting in the market. Nervous profit-taking sets in on each attempt at a new high. The uncertainty is evident from the way the market is sticking to the red Fib line, discussed above, as if to a security blanket. Patience, a clear and unanimous signal will eventually become evident.
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Bitcoin price charts from TradingView.
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Last modified: January 4, 2016 17:19 UTC