Home / Markets News & Opinions / Bitcoin Price Sure Can Haul Chart Distance

Bitcoin Price Sure Can Haul Chart Distance

Last Updated May 2, 2023 5:16 AM
Venzen Khaosan
Last Updated May 2, 2023 5:16 AM

Trade has held the Bitcoin price around $260 and 1600 CNY for most of the day. Yesterday’s strong sell-off has rearranged the chart and its prospects.

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: 14h02 UTC

Bitfinex 1-Hour Chart

a line graph showing the price of gold and the price of silver

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

RelatedNews

The chart gives the impression that the low is in. However, the corrective structure does not resemble previous ABC downside corrections, and the indicators are moving up from oversold conditions. An adjustment of our expectation of price action is needed in order to understand this year’s price chart.

One immediate concern is the lack of internal divergence in MACD which usually indicates a maximum reading on wave 3 of an impulse. Smaller timeframes do show the subwave articulation better and at 5-minute timeframe we start seeing the MACD picture we expect for the wave down. RSI divergence on the last subwave is visible, and RSI reverse diverged to the entire wave since the beginning of February (not shown).

The block-like wave shapes are interesting from the perspective that, in comparison to the recent declining action, it is apparent that they resemble corrective wave action more than they do impulsive advancing action. Notice how the recent declining wave has a free-flowing shape, whereas the advance prior was forced and angular. It could be that price has been in an awkward area of the chart, but we may have to revisit this idea if the downtrend looks likely to continue. Wave action since February may have all been corrective.

If the three declining waves from the top are ABC, then we would expect to see advance begin in earnest. If the three waves are 1-2-3 then we are currently in wave 4 (to the upside) and a stronger wave 5 will follow. Should the latter transpire, we will switch to short selling the declining trend. The ease with which price runs in the direction of trend means that targeting becomes less important than simply selecting the most appropriate MA to use as a dynamic stop loss.

Summary

Our expectation that price would target the daily chart’s 200MA was over-ridden by formidable resistance just below $300 and 1900 CNY. xbt.social analysis had pointed out the need for a deep correction, and given the failure to tag the daily 200MA, we must now wonder about the direction of the primary price wave. Price’s next move will tell us about the direction of the larger trend. Trading requires us to be fluid in the market, and the current change in the price chart encourages the trader to adapt their expectations.

The Bitfinex depthchart shows $250 may be an obstacle to decline – but will the buy support stand or will it give way?

a line graph showing the number of people in each country

Click here for the CCN interactive 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.

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.