Market trade has pulled the Bitcoin value (price) to a marginal, but not a new, low. Divergence may force another wave higher on the next low – or sooner. The situation is grim: price waves have little range and, therefore, do not allow profitable trade. Additionally, there is market indecision about prospective direction, so identifying and positioning for the next price move has become a shot in the dark.
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Bitcoin Value and Price Analysis
Time of analysis: 09h20 UTC
BTC-China 15-Minute Chart
From the analysis pages of xbt.social, earlier today:
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There is not much to say about the current price action. The correctional waves are not establishing new highs or lows and “corrective” is the only description.
We’ll have to wait for a decisive move to show some internal wave structure (three or five waves) and to expand on the existing waves in the chart.
It is not clear if price is correcting prior to making another push higher or if these are the initial waves prior to a move back to the yellow trendline, below.
Failure ot hold above the red 200MA implies the market favors decline, but this is not enough to justify a trade or adequate information to find a short entry.
The narrow range is causing the indicators to max out quickly in both directions, hence the frequent diverence and reverse divergence signals in the 15-minute chart.
The 1-day timeframe chart still has an apparent sell signal in formation, but the momentum indicators at that timeframe are not biased to either direction. If the daily chart MA signal wants to stamp decline, then today and tomorrow is the optimal time.
Meanwhile, the 4-hour chart has the exact same MA alignment in reverse – signalling a buy, but again the indicators are not confirming the signal.
Summary
This is one of the most confused charts seen for a while and it is a perfect time to stay out of the market and refrain from trading. Any signal we can find is quickly negated by another indication at another timeframe. If a strong move higher or lower erupts, it must first break out of the established price range between $235 – $256 (1450 – 1590 CNY) before we can see which way the market wants to trade going forward.
Bitfinex Buy/Sell volume holding the middle line:
Click here for the CCN interactive price chart.
What do readers think? Please comment below.
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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.
