Bitcoin price continued advancing through today and has reached a resistance layer dating back to 2013 at $680. Will the market progress beyond this strong barrier?
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Time of analysis: 14h00 UTC Bitstamp 1-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
Bitcoin price is currently grappling with the $680 support and resistance level in the popular BTC/USD charts of Bitstamp, Bitfinex, OKCoin and Coinbase. This may be the scene of either a correction or reversal, although the ascending wave structure implies at most a correction followed by upward continuation.
The charts gave xbt.social buy signals, almost simultaneously, at the 15min, 1hr and 4hr timeframes. Upon rising from $630 (Bitstamp) the signals were clear and prompted xbt.social traders to open larger than usual buy positions. Aside from the specific xbt.social signals, similar but less vivid indications can be seen in 15min and 1hr MACD crossing above both its signal and zero line.
1hr RSI seems to have found support at its 50 level, while price made higher highs and higher lows. Any RSI dip below 50 is likely to cause reverse divergence to price and crank price higher. This may be the dynamic that propels price through $680.
In contrast the angle of descent of the stochastics warns that we might see a larger correction below $680. The correction could retrace a large portion of advance but is unlikely to be a reversal, for the reasons outlined above.Reasonably we could, therefore, expect the larger price wave to target the 1.618 Fib extension of the largest base wave. This target is at $755 in the Bitstamp reference chart. […]
