Bitcoin price is edging higher as Gold is whip-sawing near its 2016 highs. With Classic(TM) looking to be heading the same way as XT, the market may feel renewed confidence in the integrity of Bitcoin. Today’s analysis proposes a few technical confirmations that should be observed before betting on the upside.
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
Bitstamp 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
The general mode of trade appears to be using the MAs as support for slow upward progress. The 1-hour chart MAs (not shown) seem to have an xbt.social buy signal forming, but before we prepare to trade to the upside, let’s remember yesterday’s illustration of how the market is painting itself in a corner. Today’s 4-hour Bitstamp chart reinforces the analysis that upside potential is limited.
Firstly, above the current area of price action there looms the descending trendline (pale blue) that will require some negotiation. Before we go long, we should watch for a breach of this line.
Secondly, less than $5 above price there is an ascending Fib line that had caused price to react (or reverse) on several prior occasions during 2016. Even if there is sufficient bullish conviction to continue advancing, this Fib line could cause correction before letting price pass.
Thirdly, a look at RSI (second from top) shows that the indicator will soon hopelessly reverse diverge to the top of the previous correction if price continues advancing. The stochastics (top) are also grouping in overbought territory – not necessarily the end of advance, but a condition that warns of a pullback. Summary If the market trades price higher, despite the […]
