Tuesday, January 16, 2018
Home The Bitcoin News Bitcoin Price Bumped Down By $680 Resistance

Bitcoin Price Bumped Down By $680 Resistance


Advertised sites are not endorsed by us. They may be unsafe, untrustworthy, or illegal in your jurisdiction.

Bitcoin price is being rejected by the prevailing $680 support and resistance level. The outlook remains that a consolidation is underway – prior to lift-off, but we keep a weary bearish eye on critical support just below price.

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: 13h30 UTC

Bitstamp 1-Hour Candle Chart

Selection_20160705_002

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

Bitcoin price is again falling away from the $680 (Bitstamp) resistance level (horizontal, dark blue) after failing to advance above it since yesterday’s higher low.

The chart picture still fits the outlook of consolidation to $650 (horizontal pale blue) prior to a block reward halving rally. The magenta arrow in the 1hr chart above suggests that price is using this trendline for support before making a break to the upside.

However, we should remain alert to the possibility that additional decline can still happen. Sometimes market behavior is unexpected – or even irrational. Now that the majority are committed to long positions, some big players may decide to induce selling in order to buy from lower in the chart. Potential Bitstamp targets are $650, $600-$620 (horizontal green) and $560 (the previous low).

The initial signal of continuing decline will be evident from the familiar “breach” rule-of-thumb: if the market opens and closes a 4hr candle below $620 support (green), then the previous low near $560 becomes a likely target.

Summary

The prevailing assumption is that bitcoin price will advance at the block reward halving: either in anticipation of it or following the event. Of course, since the loss of my crystal ball, I can only speculate that other scenarios exist, such as price selling off to support, lower in the chart, prior to igniting into a large advance. There is, however, no technical signal that implies a large decline at the moment. Instead, a consolidation to the existing trendline (magenta) or $650 (Bitstamp) seems the game. A breach of $650 and then $620 will change the outlook from cautiously bullish to short-term bearish.

Bitfinex Depth Chart and Buy/Sell Volume

Selection_20160705_003

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.

mm

TheBitcoinNews.com – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.

Read previous post:
The Bitcoin Halving Will Trigger a Fear of Missing Out

Akin Fernandez is the owner of bitcoin voucher service Azteco and an active technology blogger under the pen name 'Beautyon'. In...

Close