Bitcoin price has moved in a narrow $12 range since the beginning of June, and is currently below the 4-hour 200MA (red) with indicator room for perhaps one more high near the 200MA before it must draw lower or, once again, consolidate.
Bitcoin Price Analysis
Bitfinex 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
The chart above shows price history since March of this year and the sideways-to-down consolidation below the 4-hour 800MA (purple). In early May the market was able to trade price to above the 200MA (red) but the initial exuberance quickly fizzled out as the resistance of that overhead 800MA weighed down on sentiment.
The current wave up does not have the characteristics of an advancing surge. It seems unlikely that this wave will climb above the 200MA and then challenge the 800MA. Instead, the lack of momentum speaks of waning bullish confidence. The bears have already been unable to get a new low since January, but the bulls don’t show increased confidence as a result of the bears losing power in the market.
The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. – John Templeton
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Bitcoin price continues narrowing its trading range and the consolidation of longer term moving averages around price imply a long-term consolidation is underway, as outlined by xbt.social analysis during the past 5 months. There is nothing to do or say about a market that is losing momentum. As the global economy slumps, so does interest in Bitcoin, it seems. We can only wait.
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 10, 2015 at 12:40 pm CET.
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