Bitcoin Trading has price moving sideways as both bulls and bears consolidate for the inevitable move into strong overhead chart resistance.
Bitcoin Trading and Price Analysis
BTC-China 15-Minute Chart
From the analysis pages of xbt.social, earlier today:
In the absence of significant developments in the chart, a review of price action over the past months confirms that our outlook is on track.
A zoomed out view of the 15-minute BTC-China chart shows the interaction of price with its 200-period moving average (200MA) over the past month. The overall upward trajectory is moving between Fib fan lines originating from the 2013 all-time high.
The approach to the overhead Fib line seems to have the objective of imminent crossover to the upside. We've explored the presence of various layers of chart resistance in the area directly above but the market's intention of entering the area is evident from the upswing in price action. Price may still meander around current levels but the manner in which price action has stuck to the 200MA for the past 12 hours, suggests that a move away is imminent.
If the move is to the upside, it would require strong and persistent buying to break above the Fib line near 1730 CNY ($285 Bitfinex). As we see from the crossing of the lower Fib line on the left of the chart, the market prefers a slow creeping approach when it comes to breaking through significant resistance and the current obstacle may need the same sideways approach to the upper Fib line. The process would draw volatility to near zero while compressing MACD and building the pressure needed for a strong surge higher.
If the latter scenario is the tactic of choice, then we still have a few days of sideways consolidation ahead. As was pointed out, earlier in the week, the corrective action no longer looks to be about achieving depth but about passing time.
Bitcoin advance is gearing up to cross over $300. It may not be a smooth ride, but it will be the final nail in the coffin of the past year's decline. Strong overhead resistance may see whipsawing price action as the bulls and bears battle it out: the bulls for a rally, and the bears for selling at obvious resistance levels at $280, $285, $290 and $300.
The Bitfinex depth chart is not the only one to feature large orders around $285.
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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.