Bitcoin price is pushing higher in a typical impulse wave pattern. The $240 and 1550 CNY level is offering “resistance” due to nervous profit taking near the previous local high. A trade entry suggestion.
Bitcoin Price Analysis
Time of analysis: 15h26 UTC
OKCoin 3Mth Futures 15-Minute Chart
From the analysis pages of xbt.social, earlier today:
Our initial target has been hit squarely, and intermittent Fib extension levels imply an eventual target near $250. Another target (not shown) points to the $255 level.
The current wave is going to advance and retrace regularly, this much is evident from its base formation which has rapid fluctuations – and a great number of them – indicating that this is, potentially, large degree wave.
We have a valid 1-hour MA buy signal across the majority of exchange charts and could, therefore, expect the present wave to continue higher. Additionally, there is no divergence or reverse divergence in the hourly chart, that is retracing from the present high at the time of writing.
Traders should enter on a pullback (such as we have at the moment), optimally, when the 15-minute chart indicates reverse divergence in RSI. In other words, RSI will be indicating a swing low NOT confirmed by price (which will be making a higher low).
Don’t rush your entry and keep shifting your stop-loss to the retracement lows as price continues above the previous high. xbt.social users who are employing a dynamic stop-loss should expect for it to be hit in this active wave. When it does get activated close your position and look out for the next entry!
Eighty percent of success is showing up. – Woody Allen
During a rally (or decline) the trader needs to employ a method for taking profit regularly. One cause of a price correction is general market profit taking at a technical or psychological high, and if one has studied the chart you may know that price will continue higher. The other cause of a deep price correction is a sell-off, which differs from opportunistic profit taking in that the decline accelerates on the panic that trend has turned down. The latter type of correction can wipe out a leveraged position. In both cases – controlled and uncontrolled selling – the trader wants to get out at a safe moment. Knowing when this is, and the rule based method that enforces it, is at the core of xbt.social’s trading method.
Bitfinex orderbook depth 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.