Bitcoin price formed a small declining wave in quiet trade, today, and has currently turned back up. Be cautious for now, there is not yet any confirmation in the chart that the correction is complete.
Bitcoin Price Analysis
Time of analysis: 14h30 UTC
Bitfinex 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
On the Bitfinex chart for a change and difficult price action to use as a basis for predicting anything beyond the coming hours at this stage.
Yesterday’s wave to the upside reversed back down after regular divergence formed at its top (magenta annotation on price and RSI).
Today’s move lower has formed reverse divergence to RSI as price comes close to its previous corrective low but RSI is indicating a slightly lower low (blue annotation on price and RSI).
The move down has not yet given strong signals of being complete and it may find support closer to the red 200MA in this 1-hour chart. The RSI reverse divergence low (circled in blue) gives us an indication of how far RSI can decline until its reverse divergence becomes critical enough to cause a strong upward reaction in price. For this reason, it is estimated that decline may continue lower as far as the 200MA.
MACD (bottom) has a magenta line drawn across its lowest points in this chart. This line represent a MACD support level and we’d expect price to find support when MACD approaches this level in the 1-hour chart.
Let’s see where today’s decline finds support – if it has not done so already.
Don’t focus on making money; focus on protecting what you have. – Paul Tudor Jones
Given the current chart, we’d expect price to find support at the 200MA and to then reverse back to the upside – perhaps accompanied by a buy signal. At this time there is no confirmation in the chart that this price correction is complete, so traders should hold back on opening positions for now.
Bitfinex orderbook depth and Buy/Sell Volume – many buy orders await below:
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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