Bitcoin trading has kept within a narrow range for the past three days, swinging price between $314 and $345. Intermittent sell-offs are followed by slower periods of buying, and for now there is no clear end in sight for this cautious cycle.
Time of analysis: 13h02 UTC
From the analysis pages of xbt.social, earlier today:
Slow price action, and the outlook for the bitcoin price chart has not changed since Tuesday.
We added a pending buy recommendation, yesterday, in expectation of price advancing to the mid-$300s and 2350 CNY. Doing so may have an additional favorable outcome as price will challenge the descending overhead blue trendline, and potentially break the back of this corrective phase.
Price is currently trading above both its 20-period and 200-period moving averages in the 1-hour chart. This is a bullish indication, but should be considered in the context of the 4-hour and 1-day charts where additional consolidation is implied. A limp sell-off at the time of writing seems to confirm the larger timeframe indications.
As the 4-hour charts shown earlier in the week had highlighted, there had been similar consolidative phases during early June and mid-September where, despite bullish chart indications, price had still bobbed up and down in a range prior to taking direction.
Given this scenario, price may still decline to $310 or $300 (1900 or 1860 CNY) prior to bouncing to the target mentioned above.
The goal of a successful trader is to make the best trades. Money is secondary. – Alexander Elder
The consolidative price pattern that is emerging has often happened during uncertain market phases in the past. The bears and bulls take turns to explore the limits of their preferred range, but there is rarely a new high or low printed in the chart until either camp capitulates their dominance by breaking out of the established range.
Rather than guessing the outcome, the prudent strategy is to wait for the break – then wait again for it to retrace – before joining the emerging trend.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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