Bitcoin price continued into a fifth wave and a higher high today – finally breaking out of a ten-day sideways draw. The prospects going forward were discussed during last month’s analysis and remain unchanged.
Bitcoin Price Analysis
Time of analysis: 14h43 UTC
Bitstamp 1-Day Chart
From the analysis pages of xbt.social, earlier today:
Price has continued higher and is making a new recovery high at the time of writing.
The prospect, dicussed in early August, that price is forming a B wave prior to the final leg of decline now comes into focus.
The action of climbing above the daily green 20MA during the past few hours, accompanied by MA buy signals in most timeframes below the daily, implies that price will now continue the advance to the 1-day 200MA (red).
From there we will assess the subsequent move. Getting there in five waves from this week’s low will conclude a three wave correction to near $250 (Bitstamp) from where we would then expect price to fall away in five waves to the final low of a decline that would have lasted almost two years.
Although the 1-day chart, above, does not show enough detail there should be another sideways correction – keeping above the 1-day 20MA (green) – before the final fast-paced wave to target near $250.
If price continues advancing above the $250 level (Bitstamp) then we will change our outlook and target to $300.
The Bitfinex depth chart, below, confirms sell resistance around $250.
Even though many things can happen, only one will. – Howard Marks
Price may draw sideways for a last stint before making the final push to $250 (Bitstamp). From there we will assess the wave pattern and potential targets going forward. For now we expect the recent damage to Bitcoin’s consensus rule and fundamental value to assert itself in a final declining wave that should terminate the long-term bear market.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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