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Bitcoin Price Analysis: Slow Sunday Trade

Bitcoin price action has been slow during quiet Sunday trade. The bears continue preferring to place orders below price, rather than pro-actively trading the market. Upside is becoming strained but may continue grinding higher until more participation, on Monday, capitulates the bearish chart technicals.

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Bitcoin Price Analysis

Time of analysis: 15h00 UTC

Bitstamp 1-Hour Chart

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

The different exchange charts are starting to diverge in their alignments and indications. The Bitstamp chart is not as bearish as the CNY charts and others, so let’s read it:

The 1hr chart shows that the stochastics have now grouped at their upper extreme. MACD has not yet touched its upper Bollinger Band and RSI has not yet convincingly diverged to the previous highs, as illustrated with a blue arrow above the recent peaks.

The implication is that the move up is not yet complete. Once price reaches the 1-hour 200MA (at the magenta arrow) we can anticipate that RSI will have diverged and that reversal, to the downside, will occur.

For decline to gain momentum, it is critical that the bears wrestle price below the $400 (Bitstamp) and 2600 CNY level. Failure to get below these levels risks locking bitcoin price into a longer consolidation above $400 which will lack profitable range and introduce difficult-to-read corrective price action.

Summary

Traders holding short positions should be prepared to close position if price pushes above the red 200MA, since the bulls will probably return price to the vicinity of $418 and, again, remain passive until the next leg of decline. A reversal to the downside, from the 1-hour 200MA, is unlikely to break below $400 today, since more participants will be required, on Monday, to sell price lower.

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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