Bitcoin trading has price straining to gain altitude. Advance is following an upward trajectory but the wave pattern is choppy – indecisive trade for the most part but with small surges that, at least, push to new highs.
Bitcoin Price Analysis
Time of analysis: 05h40 UTC
Bitstamp 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Price is advancing with difficulty, but is slowly making progress along a cautious trajectory.
At the current juncture, there seems to be a horizontal resistance layer, since price has not progressed to obvious targets at $295 and $297.50.
In addition, the present advancing subwave seems to be a corrective B wave. The subwave is tracing out jagged, overlapping candles and reversed at the previous high near $294.
Price may still push higher but it seems more likely that a retracement may happen prior to price pushing to the resistance level at $297.50 and then $300. The proximity of the targets in the advance since the 24th, in addition to the strained upside progress probably give us the clue that this wave is not going to pass $300 with ease.
A glance at the Bitfinex depth chart, lower down the page, shows that profit takers are waiting at $300.
The best strategy here is to just allow our dynamic stop loss to do perform its function of locking in profit below $300, and to then re-enter trend once the contention surrounding $300 has been resolved. It may take a while and holding an open position while the market is dithering is not good for morale.
Hold position for now, but don’t feel reluctant to take profit below $300.
xbt.social member disucssion
The most important rule of trading is to play good defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. I do that so I can define my maximum possible draw down. – Paul Tudor Jones
It is possible that an unexpected surge may ignite a stronger wave in this rally. However, based on what we have in the chart it seems the market is approaching $300 with trepidation. Some futures charts have already progressed above $300 and BTC-China and Huobi are trading above their 1800 CNY psych level. Once trading buys price to above $300 the bullish determination may see advance accelerate, but we continue to expect a resistance ceiling at $310, as per yesterday’s analysis.
Bitfinex orderbook depth and Buy/Sell Volume:
What do readers think? Please comment below.
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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.