Bitcoin price has been steadily declining ever since the last week’s unexpected rally high. Depending on what the market does in the coming weeks, we may soon see an end to the tedious consolidation, described by xbt.social since February, and a return to the Bitcoin price action we’ve been waiting for. However, for now, there is still some decline on the cards.
Bitcoin Price Analysis
Time of analysis: 05h17 UTC
Bitfinex 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Price is tending to a descending Fib line and the indicators are neutral.
The light blue Fib line originates at the January high and is visibly influencing price in this chart area. The indicators are in neutral territory at most timeframes and the next direction that price may take appears to be unknown in this 1-hour chart.
However, xbt.social members will notice that a classic MA sell signal has formed in the 15-minute chart. The signal we have patiently been awaiting for almost a week. Price should decline in the coming hours – either gradually or in a drop – and our short entry activates below $240 and 1488 CNY.
The depth of decline is uncertain. Targets exist at $235, $230, $222 and as far down as $194. The latter target is extreme and is not expected at this time. However, our technique of utilizing a 1-hour chart MA dynamic stop loss should allow our trade to profit from the bulk of the move, wherever its destination may be.
Time is your friend; impulse is your enemy. – Jack Bogle
note42 leads the field, followed by Blackjincrypto and brokerjin. All three have open trade positions while Volt99 in 4th place has opted for a cash position.
Holding cash during times when you are unsure about price direction is a good tactic. The trick is to correctly choose between holding BTC or USD since, when holding cash, a price advance will see your BTC increase in value while USD will lock in value if price declines.
The caveat for continuing decline is that price should decline below $240 and $1488 CNY. The subsequent declining price wave is expected to target $235 and secondary targets at $230 and $222. That Bitcoin price should decline below the support floor near $210 is unlikely, although politics amongst the recently emerged two camps of developers may cause negative mood in the market and result in selling. By all accounts the Core developers are resolving the long-standing block size debate and when they propose their solution it may just coincide with the start of a rally.
Bitfinex orderbook depth and Buy/Sell Volume – eating away at what remains of the staggered 20,000 BTC buy order:
What do readers think? Please comment below.
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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.
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