Tuesday, January 16, 2018
Home The Bitcoin News Bitcoin Price Surges But Remains Cautious

Bitcoin Price Surges But Remains Cautious


Advertised sites are not endorsed by us. They may be unsafe, untrustworthy, or illegal in your jurisdiction.

Bitcoin price surges higher but remains within the area of the recent correction. Technical analysis looks at levels and confirmation of advance.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Bitcoin Price Analysis

Time of analysis: 14h30 UTC

OKCoin 3Months Futures 1-Hour Candle Chart

Selection_20160603_002

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

Price has surged higher from its 1-hour 20-period moving average (20MA).

Although this could very well be the start of the next wave of advance toward upside targets at $600 and $680, there are two concerns that warrant caution:

1) The small parabolic wave of the past few hours typically characterizes the ending of a surging move.

2) Price has not yet left the area of recent correction (blue rectangle).

Given the above, price may continue correcting inside the constraints of the blue rectangle.

The push higher above both the ascending 20MA (green) and 200MA (red) is encouraging. If price were to continue higher it should soon fall into a sideways consolidation, wait for the 20MA to catch up, and then continue advancing. This would be an appropriate moment to open a buy position.

Should correction continue, we’d want to see price hold above the red 200MA, since any move below that opens up testing of lower support, namely $500 (Bitstamp) and even the previous $470 resistance level.

Summary

Bitcoin price is pushing higher but speculators should be cautious of the current position of price. Before positioning long, wait for price to test support of its 1hr 20MA – possibly after a sideways consolidation. The current risk is that today’s surge could only be (an ending) component of the recent price correction. Dropping below the 1hr 20MA will confirm this notion, while dropping below the 200MA will signal additional downward correction.

Bitfinex Depth Chart and Buy/Sell Volume

Selection_20160603_003

Click here for the CCN.LA interactive bitcoin-price chart.

What do readers think? Please comment below.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

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.

Bitcoin price charts from TradingView.
Image from Shutterstock.

mm

TheBitcoinNews.com – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.

Read previous post:
Colbitex to Launch First Bitcoin Exchange in Colombia

Colbitex, Colombia’s first Bitcoin exchange has launched its platform in testnet mode on June 3, 2016, to provide Colombians a...

Close