Bitcoin price teeters on the edge of a precipice like Wily E. Coyote holding onto an anvil. The roadrunner is further up the road at $680. Beyond lies the promised land of bitcoin price $2000. FOMC night is here again.
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Time of analysis: 13h00 UTC OKCoin 3-Month Futures 4-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
While the 1day and 3day charts remain in a bearish state, we anticipate decline.
The 4hr candle chart MACD remains below zero (magenta circle) and RSI keeps reverse diverging from price (blue annotations), which is vanilla flavor bearish in anyone’s TA textbook. The proposal is that the market is denying decline with irrational psychology, but without institutional (whale) support. Hence, a sideways corrective pattern may form (magenta trendlines) until the sell-off below $640 kicks in.
$640 is a critical pivot: while price remains above it there is every chance that the largest players can hold price above this level until, eventually, initiating an advance. There are many previous examples in the charts where the whales had enforced a horizontal support level and stunted decline, despite a bearish market. Our xbt.social method dictates that we sell, but we’ll follow the whales and only fully commit if they concede decline below $640. FOMC
Today at 19h00 UTC there will be a Federal Open Market Committee (FOMC) announcement regarding US rates. Hence the sideways “holding pattern” mentioned above. Wider market consensus is that the Fed will not raise rates and may only do so in December 2016 after the US election.However, two factors to consider:1) The market often uses news events (regardless of content) as catalysts for action.2) The Fed […]
