Bitcoin price is being rejected by the prevailing $680 support and resistance level. The outlook remains that a consolidation is underway – prior to lift-off, but we keep a weary bearish eye on critical support just below price.
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: 13h30 UTC Bitstamp 1-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
Bitcoin price is again falling away from the $680 (Bitstamp) resistance level (horizontal, dark blue) after failing to advance above it since yesterday’s higher low.
The chart picture still fits the outlook of consolidation to $650 (horizontal pale blue) prior to a block reward halving rally. The magenta arrow in the 1hr chart above suggests that price is using this trendline for support before making a break to the upside.
However, we should remain alert to the possibility that additional decline can still happen. Sometimes market behavior is unexpected – or even irrational. Now that the majority are committed to long positions, some big players may decide to induce selling in order to buy from lower in the chart. Potential Bitstamp targets are $650, $600-$620 (horizontal green) and $560 (the previous low).
The initial signal of continuing decline will be evident from the familiar “breach” rule-of-thumb: if the market opens and closes a 4hr candle below $620 support (green), then the previous low near $560 becomes a likely target. Summary The prevailing assumption is that bitcoin price will advance at the block reward halving: either in anticipation of it or following the event. Of course, since the loss of my crystal ball, I can only speculate that other scenarios exist, such as price […]
