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Bitcoin Price Analysis: Constricted Price Slump


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Bitcoin price continues holding a sideways course since the $550 high. Advance to $600 should be next but bull-headed buying into bearish technical conditions prevents the current price correction from completing, thereby, also delaying advance.

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.

Bitcoin Price Analysis

Time of analysis: 14h00 UTC

Bitfinex 1-Hour Candle Chart

Selection_20160602_001

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

Price is tending lower but we’re not seeing a uniform combination of xbt.social sell signals across exchange charts.

Additionally, the local support level (blue) around $520 in the Bitfinex chart may prevent decline to the 1hr 200MA (red) near $510, so the recommendation is not to take the sell trade at this time.

Strong buying is preventing decline at every candle low, as if a bullish faction is actively preventing decline. The market wants to sell – we can see that from obvious sell signals forming – but as has been the case for most of the past 3 months, proportional decline just doesn’t manifest. This is concerning, since it only delays the inevitable.

Preferable would be a swift, sharp sell-off to support that completes the corrective move, followed by vigorous advance. Instead we get creeping price moves of uncertain direction and distance which is unfavorable to intraday trade.

After the stuttering price moves complete we’d expect an advance to the next major support and resistance level at $600.

Summary

Bitcoin price has moved non-descriptly since yesterday’s bearish post. Price remains in the $530s with a downward tendency but persistent buying keeping price action in a sideways path. A successful test of, at least, $500 would instill confidence in renewed advancing energy to the next advance target at $600.

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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