Bitcoin Trading Tired Of Resistance?

Bitcoin trading sold price from the $425 price level and is now turning back up in what should be a telling price move.

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Bitcoin Trading and Price Analysis

Time of analysis: 14h30 UTC

OKCoin BTC/USD Spot 1-Hour Chart

From the analysis pages of xbt.social, earlier today:

Unlike the CNY exchanges, the USD exchanges had not strained higher overnight. The CNY exchanges keep trying for a new high with BTCC, especially, having optimistic buyers that kept its price above Huobi and OKCoin for most of the day.

The 4-hour chart (not shown) had become overbought today while the 1-hour chart (above) 20-period moving average (green) lost upward trajectory – implying a wave back down to the 200MA (red).

Currently, a combination of RSI reverse divergence (magenta line) and the stochastics having grouped at their minimum (magenta circle) is forcing a push to the upside. How far this upside wave will get remains unclear. The 20MA may resist its advance or it may break to a new high nearer $432.

Bitcoin’s price action has been highly confused (and confusing) during the past few months and this does not look like a chart that is confidently rising into an advance. Yet, the bulls can stampede at any moment. A lingering concern is the amount of time that bitcoin price has remained above its 1-day 200MA without actually making upside progress…

Summary

Our tipping points remain at $432 and $406 in the Bitstamp chart. We now have two impulse waves (in the grey channel lines) separated by a three wave a-b-c correction. This may be a completed wave that will now turn down, or if an advance is underway another wave to the upside should breach upside resistance at $432 and open the rally. Methodical traders will wait for the breakout, sacrifice the first $10 or $20 of the move, and build positions in what should be a long-haul move – whether up or down.

Bitfinex Depth Chart and Buy/Sell Volume

Click here for the CCN.LA interactive bitcoin-price chart.

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Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.