Bitcoin Price Direction Uncertain

Bitcoin price is midway between this week’s earlier high and yesterday corrective low. Currently hovering around $267 and 1672 CNY for most of the Asia-Pacific session, the European and US sessions may generate more movement. Yesterday, we outlined a few scenarios for the coming weeks and today’s analysis tries to find the immediate direction from a 4-hour chart assessment.

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Bitcoin Price Analysis

Time of analysis: 05h33 UTC

Bitfinex 4-Hour Chart

Bitfinex 4-Hour Chart

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

Price is midway between the corrective low and this week’s high.

A 4-hour chart shows the range of consolidation since January of this year.

The most recent price high did not touch the upper blue trendline and may yet do so. Yesterday’s price action made a dash for a new high but then ran out of steam with no apparent resistance holding it back. However, this may yet be the initial waves of another attempt at $280, that was undershot during Monday’s labored advance.

As outlined in yesterday’s initial analysis post, the chart still has room for one more declining wave. Not that we want it or need it – surely, advance is the preferred option for the majority of traders. Yet, presented with an ascending wave and convenient catalysts (Euro zone troubles, a China equities crash and New York Stock Exchange malfunction), still the advances have only slightly more momentum and volume than the declines.

Additionally, as annotated in magenta, the angle of each successive advance is steadily becoming shallower. This is not what we want to see, but look away and then look back at the chart: objectively, price action is both slowing down and winding down.

A great trader is like a great athlete . You have to have natural skills, but you have to train yourself how to use them. – Marty Shcwartz

Summary

Unless price can get above the consolidation upper blue trendline and take $280 (that it had missed earlier this week), we’ll have to consider whether we’re looking at a corrective wave structure similar to that of March. If this is the case then $230 comes back into our target scope. Immediate price direction should either make a corrective low and then head back to $280, or the upward momentum may already have failed and a decline to $250 started.

Bitfinex orderbook depth and Buy/Sell Volume:

 Bitfinex depth buysell volume 11h10 090715

Click here for the CCN.LA interactive price chart.

What do readers think? Please comment below.

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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.
Image from Shutterstock.