We all want Bitcoin price advance and sooner would be better than later. Acknowledged. Yet, at the risk of being a wet blanket, it has to be pointed out that the current wave still fits with our consolidative outlook and may not continue advancing this time round.
Bitcoin Price Analysis
OKCoin 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
There is little in the chart to give us reason to believe that this particular price wave is going to continue into a larger move. The wave did not start with impulsive drive and it is advancing, with strain, into a mess of overhead resistance and poorly aligned moving averages at all timeframes.
The 4-hour chart above gives an indication in the stochastics (top) that the wave will soon reverse. It may still push higher but according to those prior stochastics signals – once they are grouped at their upper extreme and then flash a red divergence signal – the price wave has reversed without fail. Sometimes one more wave higher unfolds, and then the reversal occurs.
RSI and MACD are also diverging from price on this last high – but only marginally. Once underway, the move down should conclude when the two slowest (lighter colored) stochastics reach the bottom of their range.
Trading is a game of probabilities. You don’t have to be right every time. You just have to follow your rules. – Vadym Graifer
KLajosK had been in the lead for most of the day and looks to have closed their long position a bit too early which allowed lenteracoinproject to pump into the lead. s68k holds a respectable 2nd place with 32% profit in a terrible week of flat market activity.
The Neolystic1 fights through clicker-finger pain to stay in the leaderboard. If these were real trades, the exchanges would be fighting one another with centralized bank model tooth-and-nail to win the custom of such a prolific fee payer!
Bitcoin price advance lacks conviction. Price decline lacks conviction too. A move lower is due once the current small advance concludes, but how far will it decline? $226? $220? As far as probabilities go, neither upside nor downside offer opportunities that allow profitable, low risk trade. Best to stay out of the market and continue observing.
Bitfinex orderbook depth and Buy/Sell Volume:
What do readers think? Please comment below.
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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.
Updated: June 13, 2015 at 12:25 am CET.
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