Bitcoin price has spent another day in the vicinity of its consolidation pivot level of $640 (Bitstamp). Consolidation leads to break-out, but traders are advised to mind the possibility of a fake-out.
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Bitstamp 1-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
The horizontal magenta line shows the $640 (Bitstamp) level around which price has been oscillating for the past two weeks. Any move below is quickly bought back up to $640 and any advance above, eventually returned to this level. Even the downward spike, a few blocks before the halving event, had targeted $640 – overshot and snapped back to it.
At the time of writing, price is just $640, below its 1hr 200MA (red) and, according to the stochastics (top), still declining. A look at the MACD indicator shows Bollinger Band compression and reveals the consolidating dynamic of price action.
That consolidation is the game is clear. A break to the upside should first clear the blue resistance layer before we can confidently risk a trade toward the previous high. If consolidation breaks to the downside… well, that will be a surprise. The opportunity of such a declining move is a chance to buy cheaper coins, and potentially a profitable short trade below $600.
Due to the technical conclusion that price is consolidating, xbt.social currently has pending Sell trade recommendation since we have no reason to believe that a move down from the consolidation level will not snap back to it, or reverse straight into advance. Hence, we would only trade to the downside if we see price hold a level lower in the chart, and when we see an xbt.social sell signal […]
