Bitcoin price was washed over two waterfalls today and looks set to drop onto a support shelf at $400. With the price chart looking more bearish than it has for weeks, that may not be the end of decline.
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Time of analysis: 14h00 UTC OKCoin BTC/USD Spot 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The OKCoin BTC/USD Spot exchange spent most of the week with a permanent stream of large buy orders being inserted just below price. Its 1hr chart is featured above.
Earlier today, price declined to the 200-period moving average (red) in the majority of exchange charts, where it paused. However, once price broke below this bellwether (hell-weather for some) moving average, and then the lower channel trendline (grey), the bearish technical indications were undeniable. Our patience has been rewarded with a safe entry, at the expense of getting into position early.
This approach echoes the advice of veteran traders, who remind us that it is more important to execute a methodical and effective trade than to try and squeeze maximum profit from the move.
Potential targets at $400 and $385 are derived using the Fibonacci extension tool calibrated to bitcoin and gold’s favorite .618 ratio.One technical hurdle to the quick achievement of the initial 1.618 extension target is the reverse divergence annotated in blue on the RSI indicator (top-most indicator panel). RSI will soon exceed a previous low that is not confirmed by price, and this should cause a price reaction that will hold trade above the $400 psych level. For how long is not certain. Summary The orchestrated pumping in the […]
