Bitcoin price topped out its advance with a whimper, yesterday, and has resumed decline at the time of writing. Meanwhile, gold is shooting to the moon.
Bitcoin Price Analysis
Time of analysis: 15h00 UTC
BTCC 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The OKCoin Spot BTC/USD chart had been the main mover during early trade, and it advanced to a double top from which it then pulled back.
The other exchanges had not pushed to an equivalent high and failed to do so during the course of the day. Of course, all exchange charts don’t *have* to achieve a similar reversal pattern but it helps to increase confidence that a move is at its end.
The expected decline set in once the upward strain became too slow and tedious for the bulls who had failed to make a new high despite frenetic activity, yesterday.
There were additional signs of topping, notably in the price pattern which, since yesterday’s high, resembles the jagged advance-then-drop that we saw after the top made in mid-December.
The advancing wave is, by the wave count shown during the past week, a C wave. According to Elliott wave principle a C wave is typically an impulse wave (such as we have in the chart) and, of course, the moving averages have reflected that, but the bullish configuration of price, its 20MA and 200MA now looks to have been a false signal (blue arrow).
Decline should now target the previous low near $365 and 2450 CNY. How the market negotiates this level will set the tone for the coming months. For now it looks like gold 1.0 is receiving all the adoration. Nevermind. Patience. Bitcoin’s day will come.
Bitfinex Depth Chart and Buy/Sell Volume
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.