Bitcoin price is setting up for advance but the consolidation process appears incomplete. A large wave of advance into the final months of 2016 is building pressure.
Bitcoin Price Analysis
Time of analysis: 12h00 UTC Friday
BTCC 1-Day Candle Chart
From the analysis pages of xbt.social, earlier today:
The 1day chart confirms that the indicators are setting up for a strong wave of advance.
MACD holds above zero and price holds above its 200MA – both bullish signals.
For there to be confidence of advance the 1day stochastics (at least the two fastest lines, top) should first group at their minimum prior to a rally.
Such a grouping seems likely within a few days to a week. If price drops lower it will speed up the stochastic grouping, if sideways consolidation continues in low volatility then we may have to wait up to a week.
To get an idea of liquidity and participation prior to the pending advance, notice the increase in trade volume in the BTCC exchange during the past 2 months (bottom).
Bitcoin price maintains position above $600 and 400 CNY. Although we currently have an apparent bullish configuration at all timeframes, the condition of the 1day and 4hr stochastics warns traders to stay on the sidelines and remain patient.
Bitstamp Depth Chart and Buy/Sell Volume
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.