As quickly as bitcoin price had dropped below it, the $330 level has been reclaimed and is currently supporting an unsure sideways price pattern. The outlook turns cautiously optimistic, but we see from similar price action, during September, that at least one more drop lower could happen before any return to advance.
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Bitcoin Price Analysis
Time of analysis: 14h24 UTC
BTCC 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
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Price is consolidating around the 4hr 200MA (red) which is an encouraging sign for an outlook expecting resumption of advance.
The 4hr moving averages now don’t look so bearish and the pattern of price action strongly resembles the consolidation during September (circled). Judging by the meandering price action back then, it wouldn’t be surprising to see a similarly drawn out consolidation here as the market tries to establish a new support floor above $300 and 2000 CNY.
Although the chart looks more neutral, there is still a chance that the market may target $300 and 1860 CNY prior to us seeing advancing price action.
We wait for either another sell-off, or an advancing wave that clears the overhead descending blue channel line.
To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate. – Jesse Livermore
Summary
During consolidation, the bitcoin price chart is prone to erratic price action. During such times it is best to simply stay out of the market and wait for unambiguous signals of advance in the 1-hour and 4-hour charts. If not $300 then we may see at least another correction to $310 (Bitstamp) to test support.
Bitfinex orderbook depth 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.
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