Bitcoin price has been locked in a sideways course for the past week. We wait for a decisive move in one direction or the other to give more insight into the current price pattern.
Bitcoin Price Analysis
Time of analysis: 14h04 UTC
Bitstamp 1-Week Chart
From the analysis pages of xbt.social, earlier today:
Slow price action for the past week and let’s take a step back and look at the 1-week chart.
The recent high near $320 had caused reverse divergence to a Juanuary 2014 high. Hence, the subsequent downside was severe and we currently see price below both the 1w 20MA and 200MA.
The fact that the RSI reverse divergence, mentioned above, had pushed to such a significant high means that subsequent advancing waves will have more clear air to attain altitude in the chart.
We also see a blue-dot divergence indication in the xbt.social stochastics (top) – implying that price is making downside with difficulty. However, let’s keep that indication on ice since it is not confirmed by any of the other indicators.
MACD (bottom) can just be seen declining from its zero line with price below both 20MA and 200MA. This seems to be the more significant signal in the 1-week chart. Despite a bearish setup, price continues trading in a narrow range and with no specific goal or dynamic at play.
We remain out of the market until a recognizable setup becomes clear.
It was never my thinking that made the big money for me, it always was sitting. – Jesse Livermore
Bitcoin price is coiling up tighter in its sideways consolidation. Eventually price action will spring in one direction or the other and give us additional clues as to what larger price pattern is unfolding.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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