Bitcoin value is holding price above support near $275 and attempts to sell price down have been foiled by strong buying support. Analysis considers market psychology at the current juncture in the chart, as well as potential outcomes.
Bitcoin Price Analysis
Time of analysis: 06h43 UTC
Bitstamp 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The 1-day 20MA is currently located at $274.80 in the Bitstamp chart and there is strong buying support, since price is not getting more than a few pips below $276 (Bitstamp).
For now it looks like the support is holding. If it refuses to give way – and the market cannot get below it – then the only option for traders is to buy. But the market could have done this already… so, there is contention between the bullish and the bearish camps.
Only six months ago, the bears lost control of a chart they had controlled for over a year.
The bears’ plausible motivation for wanting to sell down the commodity of our Age could be many: habit (if it works keep doing it), desire to buy in at lower prices, and perhaps resentment for not having been among the early adopters and having missed out on getting bitcoins for “peanuts” a mere 3 years ago. With price back below $300 the bearish tendency has been strengthened and we see them active in the chart – but they lack their former power.
The moving averages tell the full story: In the 1-day chart Bitcoin price is rising above an MA buy signal following a multi-month MA consolidation. Price has found support (for now) at the 1-day 20MA and according to the last analysis update on Friday [available to xbt.social members], we can now expect a price shelf to form between $280 and $320. Once our xbt.social buy signal flashes we can expect the advance to resume. Its targets will be the subject of a Long-Term analysis later this week [xbt.social].
Alternate scenarios certainly exist: if price breaks below the 1-day 20MA at $274.80 (Bitstamp), then a large can of downside will open up. This is not a disappointment but an opportunity, and we will use it to first sell to $250 and $230, and then buy for the longer term. Such a turn of events will strengthen MA compression and generate a stronger rally after the fact.
An additional challenge on the 1-day 20-period moving average at $274.80 needs to be watched for a potential breach.
Formal education will make you a living, self-education will make you a fortune. – Jim Rohn
Bitcoin price is holding above support and may consolidate between $280 and $320 before advancing. The market may opt for additional decline, yet Bitcoin traders and investors have nothing to lose from downside continuation. The only potential loss, is if traders anticipate an advance from current levels and buy into it before we have confirmation that decline is ruled out. So, patience. There will be stupendous profits in case of ongoing advance – don’t worry about that! In the meantime, protect the funds you have.
Bitfinex orderbook depth and Buy/Sell Volume:
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Bitcoin price charts from TradingView.
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