Bitcoin price has declined to support at $285 and failed to break lower. Yesterday’s sense that direction was unknown, now sees a potential support floor for advance developing. A few clues in the price chart imply that once the consolidation is over (if not already complete), price may move on $300 again.
Bitcoin Price Analysis
Time of analysis: 03h48 UTC
Bitstamp 15-Minute Chart
From the analysis pages of xbt.social, earlier today:
During the US evening time and early Asia-Pacific session, price declined to the 1-hour 200MA – shown in the 15-minute chart, above – as the 15-minute 800MA (purple) at $285.
Four consecutive candles attempted to break below before trade finally lifted price back above $290 and 1790 CNY.
The low was accompanied by divergence in the stochastics (top) – notice the xbt.social red divergence dot – and reverse divergence in RSI (second from top).
The fact that the 1-hour 200MA held support and that the subsequent push higher had achieved a high above the 15-minute 20MA (green), as well as the 15-minute 200MA (red) signifies that the declining pattern had terminated at $285.
A new wave to the upside should now unfold and may be followed by another declining pattern that will either test the 1-hour 200MA support or achieve a breach below it.
The 1-hour 200MA at $285 must, therefore, hold price above it if advance is to resume from current levels. The correction may still continue drawing sideways for some time, but a push above the 15-minute 200MA at $290 followed by advance above $300 will be confirmation that the next wave of advance has begun.
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
Earlier in the week we looked at two declining scenarios, whereby, price would either break below the 1-hour 200-period moving average and target $250, or decline to support ($285) and then start building the base of a new wave of advance. Today’s successful test, and bounce, from support implies that the second scenario is now more likely. We have to wait for confirmation that support holds and see price rise above $300 before positioning long.
Bitstamp orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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