Bitcoin price advance started gaining momentum toward the end of the current wave. Analysis shows price may make an additional high and if the previous acceleration continues, price may continue surprising despite strong technical indications requiring it to cool down.
Bitcoin Price Analysis
Bitfinex 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Magenta line annotations show the divergences present in the indicators. RSI gives us a warning of potential upside continuation: the last high caused divergence in RSI but the move down has caused reverse divergence, i.e. a new indicator low while price is only making a higher low in relation to the previous price swing.
If price continues higher then the magenta circle at the dashed blue trendline above price should be the target. For this outcome to transpire, we’d expect price to hold above the 800MA (purple) and the descending Fib line. The area of support is circled in magenta too. The lowest magenta circle shows a likely target if the support should fail.
The $220 target now seems unlikely, but so did $234 a few days ago – price just did not have the momentum to suggest it was going to accelerate upwards. xbt.social member “P”, did point out the MA buy signal forming in the chart, yet, the distance from $229 to $234 (now $235) did not seem worth the risk.
Upward continuation is a risk: although the 4-hour (and even daily) chart indicators imply a move down is due, price has persistently pushed higher – and accelerated – from a state that could only be described as “dodrums” a few days ago.
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If Bitcoin’s price advance continues higher, then $250 and $260 become possibilities. However, before we entertain this scenario we want to see what price does at the current juncture. If price turns back up from support, then its first challenge is the overhead trendline. Above that is daily chart resistance at $242 and then the previous consolidation high near $250. The favored view of ongoing consolidation only becomes invalidated above $250. Until we see price above this level, we expect at least another declining wave to near $225 (Bitfinex).
Bitstamp orderbook depth and Buy/Sell Volume
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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.
Bitcoin price charts from TradingView.
Updated: June 14, 2015 at 5:40 pm CET.
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