Bitcoin Price – Decline Inside A Channel Of Advance

By June 23, 2016Bitcoin Business

The bitcoin price chart fell through another level of support earlier today, but is clawing its way back to $600. How will we know if the next upward wave is advance or merely a correction? The 1-day candle chart indicators give us clues.

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: 13h00 UTC Bitstamp 1-Day Candle Chart

From the analysis pages of xbt.social, earlier today:

After last night’s post price rapidly made its way down to the 4hr chart’s 200MA at $585 (Bitstamp), spiked below it, and is currently attempting to regain $600.

The OKCoin 3month futures contract 1-day candle chart is shown, for the reason that it shows leveraged trading and, therefore, exaggerated price waves. Even so, the waves conform to a channel of development (blue trendlines) that will be useful support and resistance gauges as the decline bottoms out in the coming days.

Firstly, note the location of the 200MA (red) as a support at the bottom of the channel. Traders should watch this MA for support. The behavior of the market at the 200MA will reveal a lot about the state of trend: consolidating above it and then advancing, should retarget $700. Skirting across it or breaking below will put question marks over the notion of ongoing advance. The latter outcome seems unlikely but we bear it in mind.

As for a return to advance, notice the magenta circles annotated on the MACD indicator. Significant waves of advance had all started after the point when MACD had settled on its lower Bollinger Band. MACD is currently very far above its lower Bollinger Band and the implication is that we could […]

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