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Bitcoin price is surging higher during a weekend rally. $600 has been scaled and we watch the $680 support and resistance level for a potentially large price reaction.
Bitcoin Price Analysis
Time of analysis: 14h00 UTC
Bitstamp 1-Day Candle Chart
From the analysis pages of xbt.social, earlier today:
In yet another large single day move, bitcoin price surged from $580 to $650 (Bitstamp). The popular USD exchanges have mostly achieved the $650 level; the CNY exchanges 4400 CNY and the exuberant OKCoin September futures contract chart is ticking above $700. At the time of writing a correction from these levels is unfolding but there seems to be additional advance in store.
The move higher was clearly signaled at 23h00 UTC on Saturday when price surged above its 1-hour 20MA. The move was accompanied by MACD, similarly, surging above its signal line while the 20MA (green) and 200MA (red) formed a kick-up below the advancing candle.
As illustrated in long-term analysis presented during May, there are strong support and resistance zones around $550 and $680 (Bitstamp). Now that price has departed from the $550 zone, its next logical target should be the $680 zone.
A lot of analysts have, for various technical reasons, been making calls for a large correction – similar to the outlook regularly argued here – yet, price persistently continues higher. The critical task of the trader is to act on technical signals and not on the expectation of price direction. This is how, despite frequent calls for downside expressed in these reports, and apparent “fence sitting”, xbt.social members still end up trading major price moves in the manifest direction of price movement. Disciplined adherence to method takes precedence over expectation and gut feeling.
The bitcoin price chart is surging higher as bullish trade easily scales the order books during low liquidity weekend trade. Given the pace of advance, the $680 level may be achieved within the next 24 hours. It seems a futile and often-failed call, but at some point the bitcoin price chart can be expected to put in a massive downward price correction. It may occur from the $680 level so trade long aggressively but with caution as price approaches this significant SR level.
Bitfinex Depth Chart and Buy/Sell Volume
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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.