Saturday, January 20, 2018
Home The Bitcoin News Bitcoin Price Continues Medium-Term Decline – CCN: Financial …

Bitcoin Price Continues Medium-Term Decline – CCN: Financial …

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

Bitcoin price slipped over the edge during weekend trade. Analysis looks at the basic chart indications and potential decline targets.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now.

Bitcoin Price Analysis

Time of analysis: 14h00 UTC Sunday

Bitstamp 4-Hour Candle Chart

Selection_20160731_002

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

The 4-hour Bistamp chart shows that the market had sold price straight through $640 support, from where price has been slowly selling-off toward $600 and 4000 CNY.

Although 4hr MACD had signaled Sunday morning’s decline (magenta circle), the stochastics (top panel) are grouping at their minimum, while RSI has achieved a previous lower low (horizontal blue annotation). The stochastic and RSI indications imply that price may need to correct upwards once decline to $600 has been achieved.

The present decline happens below a bearish 1-day chart (MACD declining below its signal line), as well as a bearish 3-day chart where both MACD and the stochastics declining. Hence, we may have to wait a week or two for the decline to bottom out and find support.

Based on the 1-day and 3-day bearish charts, the eventual destination of this decline looks to be at least $580, near the previous corrective low. Some analysts are calling for decline to “structural support” (meaning the previous harmonic pivot) at $450 and, from a technical perspective, nothing precludes this from happening.

Fortunately, we don’t have to guess the bottom. Once we see the 4-hour MACD establish above its zero line and then advance above its signal line – with price above its 200MA, as in the extreme left of the chart – that will be the signal to look for an entry into the next wave of advance. Advance will once again have to grapple with the all-important $680 resistance level.

Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets – Michael Carr

Summary

Bitcoin price remains in a medium-term correction and may be unfolding the final decline to support prior to, and hopefully, a bounce-and-surge rally. Downside targets are at $600 and $580. It is preferable that the market find support at $580 quickly, and without declining lower, since this could draw the 1-week candle chart into bearish bias. Better to get tests of structural support over and done with.

Bitfinex Depth Chart and Buy/Sell Volume

Selection_20160731_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:
Bitcoin Price Analysis 1.8.16

This week, the price of bitcoin sold off in a series of steps from a $684 peak on July 18...

Close