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Bitcoin Price Analysis: Yuan Exchanges At Resistance

Last Updated April 18, 2023 7:47 AM
Venzen Khaosan
Last Updated April 18, 2023 7:47 AM

Bitcoin price continues trending higher and the bulls are in control. The proposition remains that it’s a speculative certainty that price will, eventually, strike out for $500 – can the market do it this time?

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Bitcoin Price Analysis

Time of analysis: 15h00 UTC

BTCC 4-Hour Candle Chart

a chart showing the price of a stock market

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

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The BTC/CNY exchange charts are leading price into the resistance zone. Although the USD charts do not confirm the move, they tend to rapidly catch up when the market is gripped by rally fever.

There are no technical indications that imply that the BTCC chart, above, will definitely break through resistance, but this is often the case prior to a breakout.

To break above resistance, price must advance through the red zone. The zone’s upper boundary is drawn across the closing highs of late-December 2015.

Firstly, let’s acknowledge warnings of overbought conditions in the indicators:

1) The stochastics oscillator (top) has held at its maximum for two days and is currently diverging from price, as indicated by the red dot.

2) RSI (second from top) has entered a zone (magenta) from where price typically reverses.

3) MACD has reached its upper Bollinger Band and is also diverging from price’s new recovery high.

Taken in conjunction these indications warn that a price reversal is likely. However, we can see from the brief rally in the middle of the chart that these indicator conditions simply compound during a surging move higher. If a break above resistance is what will transpire, then we could expect price to target, at least, the 3150-3200 CNY zone circled in green. These price levels correspond to $495-$500 in the Bitstamp chart.

Substantial risk of downside reversal remains, yet, if it happens, the move higher will be interesting to watch – although treacherous to trade.

Summary

Bitcoin price pushes higher and we continue watching to see whether this is The One. The chart conditions do not preclude continuation higher and if the market wants to break upside resistance, this is an opportunity. A swift, clean break would be preferable, but can this market do what it must without slow self-torture?

Bitfinex Depth Chart and Buy/Sell Volume

a line graph with different numbers and colors

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

What do readers think? Please comment below.

This analysis is provided by xbt.social  with a 3-hour delay. Read the full analysis here . Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

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.