Like all commodity markets the bitcoin price is a mystery to punters. According to polls conducted by the Bitcoin eXTended cargo-cult leadership, the “economic majority” of Bitcoin stakeholders support a fork to larger blocks. To what end? More adoption, they say. What would be the benefit of that? A price and value increase, of course!
Bitcoin Price Analysis
Time of analysis: 04h14 UTC
Bitfinex 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
Our short position remains open as price slowly declines toward the consensus target at $252 (Bitstamp/Bitfinex).
The longer-term 4-hour candle chart shows price declining in a descending channel with the last wave 5 not having reached the lower channel trendline.
Bitcoin price sometimes completes the final (5th) wave short of target – often with a double bottom. The same may occur here, as most exchange charts now show a deceleration of downside progress.
The major support levels near $252 and 1550 CNY include the 100-period moving average as well as the 200-period moving average at the daily candle timeframe. If price does make the distance all the way to target, members are advised to take profit, since progress below target is highly unlikely without first correcting to the upside.
We remain observant like trading legend Jesse Livermore and watch for signs of reversal.
It was never my thinking that made the big money for me, it always was sitting. – Jesse Livermore
The “economic majority”, as XT Hearn calls them, believes that larger blocks will lead to bitcoin price increases. In other words, whichever way you cut it, the economic majority want to see a higher price in the chart. With them being an economic majority, it begs the question: “Who then, is the economic minority that keeps selling this chart down?” And how does an economic minority of bears possibly out-sell a majority of bulls? By pretzel logic, of course.
Bitfinex orderbook depth and Buy/Sell Volume:
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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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