Bitcoin price decline reversed at $380 (Bitstamp), yesterday, and is currently running into upside resistance. It is still too soon after the last strong wave down to confidently call the next move, and analysis suggests staying out of the market until the present chart indications resolve.
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Bitstamp 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
Bitstamp 4hr chart on the left and a 1hr chart on the right
The xbt.social trade recommendation from $433 (Bitstamp) is now closed, since its dynamic stop loss was triggered when price returned to the 4-hour 200MA a few minutes ago. The closing price was Bitstamp $404.
Last night’s drop below the 4-hour 200MA was fast and determined and hit exactly to the lower Fib line target (blue circle) identified in yesterday’s analysis. Price has now bounced back to the 4-hour 200MA and what happens next at this juncture will be interesting.
The 20-period moving average (20MA, green) and price is converging on the level of the red 200MA. Judging from the diverged stochastics (top panel, notice the blue dots indicating downside regular divergence), as well as the over-sold state of both stochastics and MACD (panel just above price), we’d expect price to now react to the upside. But RSI has reverse diverged to a previous high (magenta annotation, third panel from top) and price is pressed up against the resistance of the 4-hour 200MA. So, strong (but opposing) forces are acting on price in the 4hr chart and we should wait to see how the market navigates this high-pressure condition.The 1-hour chart (not shown) has RSI reverse diverged to a […]
