Bitcoin trading rallied price through resistance in the $240 / 1500CNY area earlier today and achieved a high of $252 (Bitfinex) and 1578 CNY (BTC-China). During the past few hours, a retracement has returned price to earlier resistance for a retest accompanied by strong reverse divergence.
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: 13h42 UTC
Bitfinex 1-Hour Chart
From the pages of xbt.social, earlier today:
The 1-hour chart shows that price reached the upper edge of the zone of contention between $240 and $250. At the moment, the market seems to be retreating to the level of the previous high at $247. Coincidentally (if there is such a thing in the market), the level overlaps with three moving average envelopes as revealed by the 4-hour chart…
…The return to the previous resistance – now turned support – is a deep retrace. There was no sign that the correction would pull so deep, else we could have taken profit at $250 / 1,578 CNY and doubled-up on the second run!
Summary
Price is correcting after a 36-hour rally to the mid-$200s. Following the consolidation – now at a new support floor of $240, the market should head for $260 and 1600 CNY. Additional targets lie far above, but for now, we trade it one wave at a time.
The Bitfinex Buy/Sell Volume indicators show how the buying that spurred the rally is now being overshadowed by profit-taking.
Click here for the CCN interactive price chart.
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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.
