Bitcoin Price Decline Slow But Steady - Bitcoin and Altcoins News

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March 2, 2016

Bitcoin Price Decline Slow But Steady

Bitcoin Price
Bitcoin price continues labored decline. Optimistic buying intermittently pulls price to lower highs while the technical indications in favor of additional decline are compounding.
This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Bitcoin Price Decline Analysis

Time of analysis: 14h00 UTC

Bitstamp 1-Hour Chart

Bitcoin Price Decline
From the analysis pages of xbt.social, posted at 04h00:
The most recent lower high had formed reverse divergence in RSI (magenta annotation), and we can expect another wave down today.
The structure of the declining price action is complex – not the single long red candle variety that we’re accustomed to seeing – and this implies one of two things: Either the decline is corrective and another wave toward the resistance ceiling will follow, or this is the beginning wave of a large decline (and hence the observed complexity). The moving average signaling at both the 1hr and 4hr (not shown) timeframes implies that price is rolling over into decline, and our currently active xbt.social trade recommendation is based on this outcome.
There are still many buyers piling in at each new low, no doubt expecting a return to advance. Once the reality of decline grips the market there will be additional opportunities to increase position size, so traders should keep their short position small (approx. quarter size) for now. Buy-and-hold allocation should be approx. 35:65 (BTC vs fiat) at this time.
If a new advancing wave should commence, before price breaks below critical support at the up-sloping Fib line currently running through $416 (Bitstamp), then a smaller position will be easier to manage and exit. Always a good idea to build your positions as confirmation of trend strengthens, rather than make all-or-nothing directional bets.

Summary

Bitcoin price decline continues with effort. For now we observe the price reaction at the 1hr 200MA (blue circle). The next reaction level is the up-sloping support line. If price breaks below this line, then the primary target is $404 (at the purple circle) and a secondary target at the 1.618 Fibonacci extension (orange arrow) at $390 (Bitstamp).

Bitfinex Depth Chart and Buy/Sell Volume

Bitcoin Selling Into Decline
What do readers think? Please comment below.
This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
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.

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