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Bitcoin price was traded above yesterday’s high in energetic trade today. The size of component price waves is both larger and more volatile than what we saw earlier this year, or even earlier this month.

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.

Bitcoin Price Analysis

Time of analysis: 14h00 UTC

OKCoin 3Mth 1-Hour Chart

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


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If the Fib lines at $377 (OKCoin 3Mth) and 2300 CNY give way, then the next likely downside target is the 1hr 20MA (green).

Dropping below both the Fib lines and the 1-hour 20MA opens decline to the lower Fib lines at $340.

Price velocity is strong and the moves happen quickly. We may see a strong rally in the coming days and weeks. Resist the temptation to trade short while this advance is in progress – waves turn quickly and their distances to the upside is large.

If you currently hold an open position keep it open – while price holds above the 1hr 20MA green there is no need to close. Should price drop lower than the distance (specified in yesterday’s xbt.social trade recommendation) below the 20MA, close your position. So far, this has not happened in most exchange charts.

On a breach of the 20MA, Buy-and-hold investors should return their allocation to 50:50.

Summary

Once the current correction plays out and price returns to advance, then the next defined target lies at $420, as illustrated earlier this week. However, first seeing a retracement (correction) would be useful because it will give us a better sense of the size of waves we’re dealing with – at the moment we have no calibration, other than seeing a much larger wave than usual unfolding. If price can retrace deeply, to $340 and 2100 CNY, then we can be more confident of a large rally ahead.

Bitfinex Depth Chart and Buy/Sell Volume

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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.

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Posted by Venzen Khaosan

Market analyst and Open source developer with a keen interest in blockchain technology, consensus mechanisms and the decentralizing effect.

He has found a solution to the PKI mechanism. Email me to discuss.