Bitcoin price was drawing close to its 4hr candle chart 200-period moving average (200MA). A surpise break above this level opened advance yesterday.
Bitcoin Price Analysis
Time of analysis: 14h00 UTC Sunday
Bitstamp 4-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
Exactly the sequnce of events we wanted to see in the chart.
Price is advancing above $600 and 4hr MACD (just above price) confirms the advancing move as it pushes above zero and its signal line.
It’s hard to conceive how the market will now reverse trend into decline. The declining scenarios mentioned during the past two weeks are negated by the massive volume required to push price $25 higher in a single candle. Ongoing advance is the most probable outcome, so we follow the whales. xbt.social opened a buy position at $593 (Bitstamp) earlier today.
Traders need a stop loss between $600 and the 1hr 200MA or 4hr 200MA near $575. A quarter size position allows a $20 stop-loss distance to $580
4hr RSI (second from top) should now unfold a series of reverse divergences to the wave top. The wave top – apparently – is near $720 with a potential major reaction around $680.
Good luck and good day.
Yesterday’s analysis had just been written when a group of whales hiked price by $25 in most exchange charts. The advancing scenario has a primary target at $680, that we’ll follow in the coming days.
Bitstamp Depth Chart and Buy/Sell Volume
Even though its advance time, the Bitstamp sellers reckon its time to get out of the market. Well that’s fine. More for the rest of us.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.