Bitcoin Price Decline Incomplete


Bitcoin price was pulled lower today and began a corrective advance that has now paused. Analysis shows that at least one more small wave of decline can be expected.

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Bitcoin Price Analysis


Time of analysis: 16h24 UTC

Bitfinex 4-Hour Chart

Bitfinex 4-Hour Chart

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

Our short trade was closed on the last green candle in this 4-hour chart view.

The question of what level the decline is targeting becomes relevant and will influence our decision to take another short trade to the next wave low. A wave count offers a preferred count as ABC and an alternate count of 12345.

RSI (second from top) is reverse diverged to the start of the entire wave up, but it lacks a final instance of divergence to the downside.

Divergence is flashing blue in the xbt.social stochastics (top), and strong reverse divergence shows in the MACD indicator (bottom). These indications imply the present wave is nearing completion and it may continue correcting into Monday at current levels before embarking on the last subwave down, or a short fifth wave may punch lower today and see a reversal to the upside.

Whichever of the two wave counts ends up printing in the chart, the current wave that started at label b/ii is incomplete. A final fifth wave is outstanding and could target the purple 800MA near $252. What price does when it reverses from that low, and the configuration of the moving averages, will give us clues as to the larger decline’s state of completion.

No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation. – Robert Rhea

Summary

The previous failure to get back above $300 has resulted in a larger decline. The question of how deep the market is willing to sell this downtrend remains open, but for now analysis indicates that a target near $250 is probable, where the market could then take a break from selling and possibly push higher in the chart.

Bitfinex orderbook depth and Buy/Sell Volume:

 Bitfinex depth buysell volume 23h16 090815

Click here for the CCN.LA interactive price chart.

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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.
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