Bitcoin trade has sold price lower, but not to a new low. It appears buyers are using the low $270s as a demand zone and sellers are incapable of breaking price lower.
Bitcoin Price Analysis
Time of analysis: 04h24 UTC
Bitfinex 1-Day Chart
From the analysis pages of xbt.social, earlier today:
The 1-day 20MA (green) has been breached to the downside for the second time without a catastrophic sell-off ensuing.
Although it may still happen later, we have to assume that the market is not interested in pursuing the low road. Sellers have been either reluctant or incapable of achieving a new decline low and it may be that this morning’s failure sees the chart swing back to the upside.
However, assumptions aside, the pale blue band represents a 10% envelope of the 100MA (orange) and its upper boundary is currently near $267 in the Bitfinex 1-day chart. A test of that level may happen at some point, and a breach below it might generate sufficient technical grounds for continued selling.
Until we see that we continue with our expectation that this is a consolidation prior to an advance. The first target will be the 1-hour 200MA at $282 (Bitfinex) and then, of course, the $300 psych level.
Gold, by the way, has dropped below $1100 during early Asia-Pacific trade and Google search interest in Bitcoin is trending upwards.
I’m more concerned about controlling the downside. Learn to take the losses. The most important thing about making money is not to let your losses get out of hand. – Marty Schwartz
Price, this morning, broke below the 1-day 20MA and decline is technically possible. However, the inability (or reluctance) of sellers to effect decline keeps us biased to eventual upside. We acknowledge the signs of resumed decline, but continue expecting this price pattern above $272 to be consolidation prior to advance.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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