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Bitcoin Price Advance Touches Critical Level

Bitcoin price pushed to $470 (Bitstamp) overnight and then corrected for most of today. At the time of writing a series of green candles from the low shows determined buy-power aiming for a new high. Can the bulls do it?

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Bitcoin Price Analysis

Time of analysis: 14h00 UTC

Bitstamp 4-Hour Chart

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From the analysis pages of xbt.social, earlier today:

There was a large correction across exchange chart since last night’s high at $470 (Bitstamp). Following a low near $455 around 12h00 UTC today, the bulls again took charge, and at the time of writing a frenzied buying spree has kept price advancing despite divergence, sporadic profit taking and a looming resistance ceiling at $470.

The 4-hour Bitstamp cart (above) shows the level of the resistance in grey. If the market can break through this resistance, and price keeps within its apparent channel (blue) then an upside wave could easily blow off to $490 or even $500.

However, if the resistance holds then a consolidation or larger corrective decline will be needed to resolve the severely overbought and diverged momentum indicators in the 4-hour and 1-day charts.

Magenta annotations (top right) show the extreme divergence of the stochastics (top) and of RSI (second from top). Their state is sufficient to cause decline from current levels, but the advance is missing the final parabolic blow-off wave that Bitcoin is prone to make. Perhaps this time will be different?

Summary

Price bounced strongly from a corrective low today. It is not yet clear that the bounce has sufficient momentum, or the bulls sufficient commitment, to push to a new high. A potential advance target waits at $490, but the market will have to break through strong resistance at $470 (Bitstamp). Low volume during this advance implies it may not happen this time around, although larger players may use the opportunity to ride the momentum higher.

Bitfinex Depth Chart and Buy/Sell Volume

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Click here for the CCN.LA interactive bitcoin-price chart.

What do readers think? Please comment below.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

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.

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