Bitcoin Advance Resumes But May Soon Reverse

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.

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Bitcoin Price Analysis


Time of analysis: 16h59 UTC

OKCoin 4-Hour Chart

OKCoin 4-Hour ChartOKCoin 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

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 CoinCompetition leaderboard 23h46 120615 CoinCompetition leaderboard 23h46 120615

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Summary

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:

 Bitfinex depth buysell volume 23h46 120615 Bitfinex depth buysell volume 23h46 120615

Click here for the CCN interactive price chart.

What do readers think? Please comment below.

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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.

Updated: June 13, 2015 at 12:25 am CET.

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