Will Bitcoin Price Respond to Wider Market Reversals?

Bitcoin Watch Shop

Bitcoin price has traded sideways for almost two days and we look at the momentum indicators for clues as to which way next.

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Bitcoin Price Analysis

Time of analysis: 14h30 UTC

OKCoin 3Mth 1-Hour Chart

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From the analysis pages of xbt.social, earlier today:

Three grey arrows highlight the indicator conditions at the point of advance for the last three price waves to the upside.

In each case there had been common indications:

1) MACD (top) had crossed above its zero line.

2) The stochastics indicator (second from top) had pushed higher from its lower extreme.

3) RSI (third from top) was rising from oversold territory.

The closest match to the current price pattern and accompanying indicator conditions seems to be the second grey arrow. If the market can advance price above the green 20-period moving average then the Fib extension at $420 (Bitstamp), projected in yesterday’s analysis should be the target of the present move.

Summary

The bitcoin price chart is presently in an overall bullish setup. However, this is true at every wave high. In keeping with other markets, such as gold and the US dollar, bitcoin should soon enter a price correction. Whether that happens from the present high or from slightly higher in the chart, is up to the market’s ability to trade price higher in another set of five waves.

Bitfinex Depth Chart and Buy/Sell Volume

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Click here for the CCN.LA interactive bitcoin price chart.

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Disclaimer

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.