Bitcoin Price Returns From Altitude

Bitcoin price made reentry last night and bounced at $300 and 1800 CNY after trading at almost double those prices less than a week ago. How low could it go?

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Bitcoin Price Analysis

Time of analysis: 15h27 UTC

BTC-China 4-Hour Chart

BTC-China 4-Hour Chart

From the analysis pages of xbt.social, earlier today:

A massive move lower came as a shock – not because it declined – but because it did so without clear signaling in the chart – preventing us from taking advantage of the bulk of the decline.

Some observations:

1) A corrective instance on the left (magenta annotation on price and RSI, just above price) had made a higher low while RSI was reverse diverging. The present correction did the same, but just pushed lower regardless – most probably because it is a larger degree wave and playing out at the 4hr timeframe and not the 1hr chart indicators timeframe.

2) Once CNY prices dropped below the level of the 1day 20MA – the fate of the decline was sealed.

3) $300 and 1800 CNY have provided support today. Price had found support at two horizontal support resistance levels, although (at the time of writing) price is trading below the 4-hour 200MA (red).

If horizontal support were to hold and price begins advancing soon, it would either be to correct the decline, thus far, or it may be a new wave of advance to the upside.

Summary

Advance from the current lows would be a welcome surprise after a year spent mostly below $250. If the current support level were to give way and price falls below $300 and 1870 CNY, then the lower horizontal support resistance in the chart above would present a target as well as all those levels we have become so well-acquainted with during 2015: $280, $260, $240 and $220 at the support floor.

For now there is no clear technical indication of which way the market is likely to take this. Let’s hope $300 holds.

Bitfinex orderbook depth and Buy/Sell Volume:

 Bitfinex depth buysell volume 22h18 111115

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Disclaimer

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.

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