Bitcoin price holds a sideways course since the $550 high, and a brief advancing wave has paused at the time of writing. Some bearish technical indications are evident in the chart, but be cautious of selling just yet.
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 Bitfnex 15-Minute Candle Chart
From the analysis pages of xbt.social, earlier today:
Bitcoin price made a run for the upside during the hours prior to this analysis report. As we can see from the various magenta annotations in the chart, the move has caused divergence in various indicators and there are technical reasons to believe that price will turn down – even if it is just briefly. There is a caveat and it will be pointed out after looking at the (short-term) bearish indicator signals.
1) The stochastic oscillator (top) has its two stochastics grouped at maximum while also diverging to price. Stochastic divergence is indicated by the red dots, circled in magenta. Notice that this configuration had been followed by a downward correction on each prior instance visible in the chart. However, it must be pointed out that MACD (just above price) had also flashed divergence in concurrence with the stochastics in previous instances, while MACD is currently not diverged.
2) RSI has reverse diverged to the upside: RSI had made a higher high compared to the recent top near $550, but price has only made a lower high. This instance of reverse divergence is bearish and should see price turn back down.
3) MACD is turning back below its signal line, as well as its upper Bollinger Band. This is a bearish signal, […]
