Bitcoin price teetered on the edge of moving average support near $250 before finally rolling over the edge during the cross-over US/Asia-Pacific hours. Exchange charts show that price had sold off to their support floors near $220 and 1400 CNY before stabilizing near $230 and 1500 CNY. Bitfinex saw the January 2015 low of $160 on a downward spike.
Bitcoin Price Analysis
Time of analysis: 05h11 UTC
Bitstamp 1-Day Chart
From the analysis pages of xbt.social, earlier today:
Bitcoin price slowly approached the 1-day chart moving averages, as if to conclude the downdraft, and then plummeted to the support floor.
Price is currently trading around our secondary target of $230 (Bitstamp) and 1500 CNY (BTC-China). Although the chart technicals indicated this possibility it still comes as a surprise.
Our short trade remains open.
Price is currently trying to push back above the 1-day 100MA’s 10% envelope in what looks like corrective price action in the 15- and 5-minute charts. The daily chart, above, is heavily reverse diverged to the downside, but still shows no final divergence in the stochastics (top). Although not guaranteed, price may make another lower low.
Equally, a scenario exists whereby price may continue decline below $200. It cannot be ruled out – a survey of the social media shows that not only the Bitcoin ecosystem, but wider society is in conflict. Market behavior reflects this psychology: commodities have been declining for months, mainstream media delusionally babbles about the next stock bet, and all of this accompanied by fissures in the global economy. Sometimes, when you kick a can down the road Bad Things can happen.
I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have. – Paul Tudor Jones
The bitcoin market remains in flux as other global markets exhibit volatile price declines. The Shanghai Composite Index, for example, dropped 5% since its open and the SP500 has been edging lower for days. The strategy, now, is not so much to try to call a bottom and search out the next profitable trade but, rather, to adopt a defensive stance and wait for clear signals in the chart.
Bitfinex orderbook depth and Buy/Sell Volume:
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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.