Bitcoin price has pulled lower into its consolidation zone. Although today has potentially bearish bias due to a full moon, there are indications and parameters that could see the advance pick up its pace.
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Bitcoin Price Analysis
Time of analysis: 14h00 UTC
Bitfinex 1-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
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Not sure what we’re witnessing in the chart… according to our consistent xbt.social signalling method, the currently declining wave is most likely corrective and we do not seek to trade it. Hopefully, it can complete the ongoing correction so we can progress to the next advancing wave and see some clear and meaningful signals in the chart.
An apparent advancing channel (blue parallel trendlines) did not have its upper boundary touched by the most recent upward wave – disrupted by resistance at $680 – and now the channel’s lower trendline is being tested. This could be a prelude to strong advance.
The 1hr indicators imply that price may find support at present levels: the stochastics (top) have grouped at their minimum, and MACD has reached its zero line and lower Bollinger Band. This combination had caused price to push higher on a few occasions during the past week.
Unfortunately, an esoteric indicator may derail our expectation of upside for a few days as the current full moon exerts a bearish influence. If price does establish below the lower blue trendline and the adjacent 1hr 200MA (red) then we could see the final declining corrective subwave down to the low $600s (Bitstamp) before the anticipated larger wave of advance toward $750.
Summary
Bitcoin price is routing through the lower reaches of an ascending channel. This channel may be the cannon from which advance surges – provided price does not breach the channel’s lower trendline. Wait for the unmistakable signals of advance – subscribe to xbt.social if you want to learn about these. Corrections are never fun and often extend well beyond most traders’ patience – keep focused and rather look for reasons not to trade and preserve your funds for those obvious opportunities.
Bitfinex Depth Chart and Buy/Sell Volume
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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.
