Bitcoin price has returned to its support floor for the third time in 2015. Traders must now decide what they want for this chart. The choice seems obvious – provided you understand the value of Bitcoin and its role beyond our generation.
Bitcoin Price Analysis
Time of analysis: 13h07 UTC
Bitstamp 1-Day Chart
From the analysis pages of xbt.social, earlier today:
Our long-term outlook of a zigzagging consolidation to the support floor near $220 and 1400 CNY now looks complete.
Price has advanced in 5 waves from yesterday’s low and there are several indications in the chart that price may begin advance from current levels – with one caveat that will be discussed in a minute.
All the momentum indicators have reverse diverged to previous price lows. RSI (second from the top) and the slow stochastic (dark line, top) has reverse diverged to the price low made in January 2015. Yesterday’s low only made a higher low and hence the reverse divergence should now exert an upward force on price action.
Price had retested the support near $220 and 1400 CNY in a declining ending diagonal and the subsequent advance sows 5 clear waves to the upside. We can, therefore, assume that decline has completed and that price should now begin advance.
An uncomfortable truth is revealed by the moving averages. The 20MA (green) is falling strongly toward the red 200MA in the daily chart and their cross-over is a bearish chart signal. The point of cross-over looks to occur within a day or two. This chart indication does not fit with
Originally appeared at: https://www.cryptocoinsnews.com/bitcoin-trading-advance-decline/