Bitcoin trading, today pushed price to a new low for the recent decline. A subsequent price wave to the upside has pushed higher despite divergence and resistance levels in its way.
Bitcoin Trading and Price Analysis
BTC-China 15-Minute Chart
From the analysis pages of xbt.social, earlier today:
It's too early to place this wave in a proper context, and it could either be the start of advance or the first wave of a larger correction that will set up additional decline.
The large amount of divergence generated in RSI by the advancing move must be corrected to the downside at some point. A combination of divergence and reverse divergence could see it push to the Fib line and red 200MA overhead. Alternatively, the wave may retreat to the Fib line below, before pushing higher.
The MACD divergence between yesterday's low and today's low is extreme, but there is no certainty about whether this move will sustain the upward momentum.
To prove that it is an upward wave in an advancing trend, the wave should establish above the red 200MA in the 15-minute timeframe, but more importantly, in the 4-hour chart. For now, and lacking any other confirmation of this wave's function we can only stay out of trades until a clearer wave pattern gives us more certainty about the direction of trend.
Bitcoin price has struck two new lows, the last at $235 and 1440 CNY, in the past 24 hours. An advancing wave has pushed above recent resistance, and we wait for additional price waves to help us determine price's direction of trend. Consolidation below the 15-minute 200-period moving average will imply additional decline while advance above the 200MA will open the way back to $300.
Bitfinex orderbook depth:
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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.