The Bitcoin price chart is showing signs of a pending move higher. Technical analysis considers the favorable chart conditions but identifies possible resistance to immediate advance.
Bitcoin Price Analysis
Time of analysis: 03h56 UTC
BTC-China 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The 20-period moving average (green) is approaching the red 200MA for an upside crossover. Unless a concerted sell-off occurs in the coming hours, price will be trading above both the 1-hour 20MA and the 1-hour 200MA. This moving average configuration is bullish and our method suggests opening a long position into the uptrend.
There is one concern: Price is still below the critical $300 / 1800 CNY psych level and the resistance ceiling posed by this level may contain price, if not reject it outright and send trend back into decline.
A previous example of a similar moving averages alignment is circled in the left of the chart. Price had advanced above a 20MA/200MA cross-over, only to reverse from a larger time-frame chart resistance feature, and was soon back in decline.
Our xbt.social method makes provision for this outcome via use of a dynamic stop loss and multiple-timeframe analysis. We can, therefore, open a long position as prescribed by our method’s signal, and get out in good time, and profitably, should trend reverse unexpectedly and turn back down.
Multiple-timeframe analysis will be presented in this morning’s next analysis update [at xbt.social].
Trading is a game of probabilities. You don’t have to be right every time. You just have to follow your rules. – Vadym Graifer
Barring a calamitous sell-off, the Bitcoin price chart will assume a bullish state later today if price can advance above a 20-period moving average and 200-period moving average cross-over. The fact that price is still below the $300 / 1800 CNY psych level poses risk to immediate advance, and possible delay or reversal at this strong resistance ceiling. However, having broken above $300 earlier this month implies a second attempt should succeed. Caution is advised as price re-approaches this level.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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