The combination of upside regular divergence followed by an instance of reverse divergence to the downside, has the effect of continuing a trend. Once we see the reverse divergence fail to manifest while the Bitcoin price makes a new high accompanied by regular divergence – that is usually the sign that a high has been struck.
Bitcoin Price Analysis
Bitfinex 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The regular/reverse divergence dynamic is still at play and we wait for an indication of reversal – or – if this wave will surprise by just advancing beyond expectation. It certainly looks like a persistent advance in the making and if it holds above $230 and 1440 CNY then we have to reconsider our outlook.
For now the wave simply looks like the market is pausing prior to another wave of advance and its a catch 22: does one jump in a wave only to find that it reverses or do you wait and see if it will end and then find that hours have become days? The current chart area is critical and the purple 1-hour 800MA is the first level of resistance that will either cause reversal or open up $245 / 1600 CNY.
lenteracoinproject, kaymuddin and bonbon hold their long positions and lead in the standings. A few new names appear in the leaderboard, too, as the intra-day advance continues.
The winner of last week’s round of CoinCompetition joined us at xbt.social today – Welcome, Siexpert!.
Good Luck to all competitors for the coming week.
While Bitcoin price holds above the 20-period moving average (green curve in the chart above), it generally continues advancing until a new high is made without having been preceded by reverse divergence. Price is currently approaching the 4-hour chart’s 200MA (purple in the chart above) and the intersection of this moving average with the overhead trendline, as well as, a triangle apex could spell reversal. Breaking above that level opens higher targets in the chart, but for now, we look to $234 (Bitfinex) and 1440 CNY (BTC-China).
Bitfinex orderbook depth gives no clues as to what we can expect in the coming hours and days:
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 9, 2015 at 7:57 pm CET.
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