Bitcoin trade bought price up from a low of $272 and 1660 CNY yesterday. At the current level near $280 and 1720 CNY price is in an indeterminable state of trend. Analysis looks for direction and an action plan for taking a position in the market.
Bitcoin Price Analysis
Time of analysis: 05h52 UTC
Bitfinex 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
Price has bounced from the low and maintains altitude.
The 4-hour Bitfinex chart shows price in an awkward “hanging” state – above the red 200MA (longer-term bullish), but below the green 20MA (short-term bearish).
The MACD indicator (bottom) had formed reverse divergence to the very bottom of the previous low and this is, typically, a sign that reversal to the upside is due. RSI (second panel from the top) has not diverged to the same extent as MACD, but red reverse divergence dots are sealed by a final instance of regular divergence on the very last low – notice that there is not a red indication of reverse divergence – another sign that a wave low had been struck at $272.
Our intention is to take a position in the market according to our expectation of continuing advance. If our assumption is wrong then we stop out at minimal loss and seek the next opportunity. Yet, how safe is an entry at the current juncture of price action?
Originally appeared at: https://www.cryptocoinsnews.com/bitcoin-trade-waiting-market-direction/