Bitcoin Trading is generating zig-zagging price waves in the $200-$220 range. The sideways correction is ongoing as leveraged traders take advantage of the lucrative range-bound action. Meanwhile, at the larger daily timeframe, a combination of technical indicators have emitted a welcome trade signal.
The Bitfinex 15-minute chart shows the Bitcoin price in its sideways channel. The annotated wave count implies another descending subwave to near $200. Whether or not this will transpire remains to be seen because the wave action since label “d” has been narrower and more complex. It could mean a new phase of correction has begun, or, it could mean that the first subwaves of advance are forming. No assumption begets no disappointment. The Bitcoin trading market will take its way in due course.
The moving averages tell us very little at the daily timeframe – the main impression is that price is very far from its 200 day average (red) and quite far from the faster 20 day average (green). Bitcoin price’s tendency to revert to its averages is over-stretched at this time. This is an impression and not a technical fact.
Difficult to discern, but identified at xbt.social today, is the fact that MACD (bottom panel) has signalled an upturn in the daily chart. This signal coincides with the stochastics (top panel) departing from their grouping in oversold indicator territory. This combination of signals constitutes a medium-term Buy trade for buy-and-hold investors and non-leveraged traders.
Bitcoin price has been trading in the upper layer of its corrective channel all day. The channel spans $200-$220 and is acting like a pressure cooker while it contains volatile trade in an enclosed chart space. A breakout is certain, and there are indications in the daily chart crystal ball that imply Bitcoin will be going on an unexpected journey to the north.
The 1hr/24hr buying/selling volume at Bitfinex:
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.
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.
Last modified (UTC): July 12, 2015 12:23