Bitcoin price had fallen to new lows accompanied by indicator divergence and we now see the consolidation below support that allows us to build a short position.
Bitcoin Price Analysis
Time of analysis: 15h00 UTC
Bitstamp 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
We have the condition described in yesterday’s analysis: price has made a new low accompanied by indicator divergence and the price pattern resembles the area we used for comparison yesterday. In that pattern price pushed higher until 1-hour MACD reached its zero line.
The current MA alignment is a massive sell signal. The 800MA (purple) has been added to the chart to show its magnitude. A similar instance of the same signal can be seen on the left of the chart.
We now stand ready to open a short position. Price should push higher – in a correction – perhaps as far as the red 200MA. Reaching the 200MA is less likely, given the strong downward