Bitcoin trading is approaching the coming week with caution and fortunately the chart provides us with some technical indications of what to expect before committing money to the market.
Bitcoin Trading and Price Analysis
Time of analysis: 11h30 UTC
BTCC 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
It’s easy to see things in the chart after a major move and the mind will suggest that another similar move can happen at any moment. Earlier it looked like the market was ready to take this straight back up, but a review of the 1hr chart shows:
1) MACD (top) will typically consolidate to its zero line prior to a high probability move
2) The moves had seen compression of the 20MA and price
3) the stochastics (second from top) had settled on zero
Let’s wait a while longer until we see some very obvious signals jump out from the chart. Whatever happens in the coming days, the real move will be undeniably clear by Thursday.
There is little reason to be in the market right now. If a move higher should unfold in the coming days, then we’d expect to see the clear technical signals outlined above.
However, the sheer magnitude of the Fed’s announcement on Wednesday has the market in highly strung suspenders – any rumor (or hint) that the Fed Funds Rate will not be hiked to 0.35% on Wednesday could see over-reaction and large, unexpected price moves in either direction.
Best to wait until a trend has emerged before positioning – why take the risk? Protect what you have.
Bitfinex Depth Chart
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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