Bitcoin price pulls lower toward horizontal support near $560. The outlook remains that the market is engaged in a sideways base formation prior to advance.
Bitcoin Price Analysis
Time of analysis: 14h00 UTC Wednesday
Bitstamp 4-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
Price is returning to the consolidation floor today and we watch to see if the support zone above $560 holds.
The 4hr chart has its stochastics (magenta circle, top) falling lower – even before they could group at maximum. Notice how RSI (just below the stochastics) has not formed reverse divergence to the upside on today’s high. This is an encouraging sign since the lack of divergences in RSI implies consolidation – narrowing price range – as opposed to the strongly divergent moves that preceded the late-August sell-off (left-center in the chart).
MACD continues compressing as price works its way into the business end of a contracting triangle.