Bitcoin trading launched price into a fast-paced corrective advance over the weekend only to lose momentum half-way to its destination. Trade spent its second day in sideways consolidation, today, reflecting uneasy and directionless global market conditions.
Bitcoin Trading and Price Analysis
Time of analysis: 15h56 UTC
Bitstamp 1-Day Chart
From the analysis pages of xbt.social, earlier today:
Since yesterday morning’s (UTC) push above $240 (Bitstamp), price action has been correcting sideways around $240.
As can be seen from the daily chart, above, during the November 2014 push higher there were also times when price corrected for a day or two before continuing higher.
We expect the same here and wait for price to reach the 1-day 200MA.
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
The outlook remains unchanged: Bitcoin has been fundamentally devalued by the recent consensus breach spearheaded by Mike Hearn and Gavin Andresen. Bitcoin only retains meaning (and value) as long as it cannot be changed except by near unanimous consensus. Arguably, the chart does not yet reflect full market realization of the damage that had been done and when global markets force investors’ hand we look to see where the money flows.
Bitfinex orderbook depth and Buy/Sell Volume:
What do readers think? Please comment below.
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Bitcoin price charts from TradingView.
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