Bitcoin price has dropped below $400 after falling away from yesterday’s consolidation zone and declining strongly all day.
Bitcoin Price Analysis
Time of analysis: 13h00 UTC
Bitstamp 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
Price has been declining consistently all day and punched below $400 (Bitstamp) at 13h00 UTC.
Despite momentum indicators showing price to be oversold at all timeframes we reference (1-day, 4-hour, 1-hour and 15-minute) the decline has continued. The 1-day and 4-hour RSI is reverse diverged to the downside and this implies that price will return to the upside at some point. When, or from what level is unknown, because if there is one thing the market will teach a trader during strong decline it is to never try to catch a falling knife.
A likely level for any kind of corrective consolidation seems to be the $400 psych level, and hopefully price will snap back up to it during the course of the coming days. However, there is some imbalance between exchanges as the USD and CNY charts have diverged from one another.
The USD charts have fallen below support at $415, as well as the $400 psych level support while the CNY charts, having been sold-off less vigorously, are only reaching their equivalent 2650 CNY support at the time of writing.
Subsequently, the CNY charts are still above their 2600 CNY psych level, at the time of writing. They may accelerate decline to make up the difference, but there seems to be more concerted selling in the USD exchanges.
Thoughts about why this sell-off has unleashed, despite the fundamental insecurity of XT being averted, may be related to the new crop of pretend-Bitcoin forks being promoted by populists developers. The many forks are a symptom of disunity which, in turn, is a symptom of negative social mood in the Bitcoin community – more specifically in the countries/regions where these forks are being conceived and supported. Hence, the stronger sell-off in the USD exchanges.
Bitfinex 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.