Bitcoin price is, at the time of writing, breaking out of a consolidation above $600. The market has noticed and the chatrooms are speculating if this is a time to buy. Technical analysis confirms the corrective rally proposed in yesterday’s analysis.
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Time of analysis: 11h00 UTC Bitstamp 1-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
Bitcoin price had been sticking to the Fib line near $633 (Bitstamp) and the 4hr 200MA (not shown) has risen up into the area of price action to provide additional support.
After a period of consolidation, MACD Bollinger Band compression confirms the onset of price volatility.
This is the typical configuration prior to a breakout, and analysis posted at xbt.social earlier today presumed that direction will be to the upside since the market had passed several opportunities to decline, while holding support of the 4hr 200MA, as well as the Fib fan line from January 2015.
Upside targets are at $680 (Bitstamp), $700 and, potentially $755 near the previous top. The upside wave is expected to make bumpy – even jagged – progress, since the market is trading price up in a correction. If this indeed turns out to be the case, then we’d expect to see price eventually return to $650, or even $600, after a strained wave high – somewhere in the vicinity of the previous top.A dynamic stop-loss is likely to get you accidentally knocked out (due to a bumpy corrective advance), but remains the recommended xbt.social method of exiting position. Alternatively, traders could exit at each Fib extension level as it is achieved, but finding a […]
