The recent failed attempt on $300, followed by decline back to support, implies that Bitcoin trading has abandoned immediate advance and will meander – perhaps lower – before trying to advance the price again.
Bitcoin Price Analysis
Time of analysis: 05h26 UTC
Bitstamp 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
The 4-hour chart indicators show that the recent decline has become oversold.
MACD has turned back up, RSI reverse divergence compounded and the xbt.social stochastics have now left their lower range extreme. Decline is unlikely to resume immediately, but it does appear incomplete.
As mentioned in yesterday’s analysis, concern remains for the absence of divergence signals in MACD and the stochastics. The size (degree) of the waves that have unfolded since the $318 high should register divergence at this timeframe.
One interpretation is that a later wave – still to come – will haul sufficient downside to manifest the divergence that will set up a new wave of advance. This interpretation is based on the fact that the recent upside wave to near $300 does not show an advancing wave structure, but a corrective structure. The present wave of decline, similarly, has not made downside progress and hence we have reason to believe that a price “triangle” or consolidating 5-wave sequence is unfolding. Its final wave should be a declining wave and should conclude at the present support floor or lower – potentially at the purple 800MA near $250.
Wave C may be incomplete and achieve the drop after an upward correction (see an example around 22 July) or a larger corrective Wave D may unfold to near $290.
According to this wave count, a wave to the upside in the coming days should be interpreted as corrective and is unlikely to pass $300 before sinking back to present levels and, eventually, lower.
I’ve found you’ve got to look back at the old things and see them in a new light. – John Coltrane
The pullback from $300 has returned price to a prior support and the significant 4-hour 200-period moving average. The market’s next move is anyone’s guess – even the market seems unsure. Chart technicals imply consolidation and at least one additional low is required for the upside to open again.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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