Bitcoin price decline pulls deeper into the consolidation zone around $650. Below $640 there is a freefall zone to $600, yet a reversal at $640 cannot be ruled out.
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Time of analysis: 15h00 UTC Bitstamp 4-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
The Bitstamp 4hr candle chart shows a broad overview of the final large wave to the June high, followed by a correction that quickly slammed down to $560. Subsequent price action had been ambiguous while price went through the paces of a correction – rendering the indicators mostly useless and leading the market into two bull traps prior to slumping once more.
On the weekend two declining scenarios were considered:
1) a large decline to $600 or $560, as per the overlapping Fib extension targets and support and resistance at these levels, or
2) a final subwave of decline to the consolidation pivot level at $640 (Bitstamp) from where price should reverse strongly into a new rally.Today’s wave of decline did indeed target $640 from where it bounced strongly. The second scenario, above, may therefore be unfolding. However, a few technical considerations keeps the outlook bearish:Yesterday’s daily candle closed below a descending 20-period moving average. Additionally, the 4hr chart (above) is trading below a declining 200-period moving average. The 4hr and 1hr candle charts both have their MACD indicator below its zero line and falling away below its signal line.Let’s give the market more time to show if the bullish conviction has been awakened or if we follow the bear to the bottom. […]
