Bitcoin price attempted another shot at the 4-hour chart 200-period moving average today without success. The market lacks conviction and price should draw lower as a result.
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 Analysis
Time of analysis: 14h00 UTC
Bitfinex 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Typical indicator behavior as per yesterday’s analysis: the price wave approached its top with MACD (top) touching its upper Bollinger Band and the stochastics (second from top) grouped at their upper maximum. Today’s bounce from the 20MA saw the momentum indicators diverge across the board – indicating trend exhaustion. Note how RSI (just above price) had diverged (magenta annotation) from the nominal new price high and forced price back below the green 20MA, thereby, breaking the ascending wave’s short tenure.
Let’s remain patient here. The wave up lacks participation, it is overbought and the momentum indicators show the strain with which advance had reached for the 4hr 200MA near $419 (Bitfinex).
Trade is difficult – as soon as the market achieves a short-term target it reverses – a sign of indecision and uncertainty.
As outlined yesterday, there is unlikely to be a trade opportunity until price either climbs above the 4hr 200MA or drops below the support floor just below $400.
Summary
Bitcoin price trading in a narrowing range. The current markers are ~$420 to the upside and ~$400 to the downside. A clean break above or below either will be our sign to trade. Usually, indicator signals herald the trend breakout hours or days before the market event. Even then, these allow us to set up our trade parameters, position size and strategic plan, but the trigger only gets pulled at the critical moment when breakout is confirmed by lagging indicators – believe it or not – so as to trade what you actually see in the chart, rather than trade what you think you’ll see.
Readers are invited to join xbt.social’s collaborative trading environment. We focus on critical chart analysis techniques, specific trade signals and money management strategy. You can subscribe via monthly PayPal or bitcoin payment – the latter being flexible – meaning you only subscribe during those months when you require membership.
Bitfinex Depth Chart and Buy/Sell Volume
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.
From:CCN.LA
No comments:
Post a Comment