The bulls stampeded bitcoin price higher in a corrective advance on Monday and ran into a trap of their own making. When exuberant CNY buyers failed to advance price above the 1-day 200MA, the noise in the trading pit awoke The Bear.
Bitcoin Price Analysis
Time of analysis: 15h02 UTC
OKCoin-3Mth 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The OKCoin 3Mth futures 1-hour chart and a look at the momentum indicators, to illustrate that this is not yet the time for us to react.
The indicators had diverged on the push higher and on the current pull lower they are being drawn much lower than their previous wave low – reverse divergence.
When we see an instance of divergence followed by reverse divergence this is typically a signal that price will reverse – in this case, to the upside. Price has been unpredictable during this correction and it may continue lower to the 1-hour 200MA and only then