Bitcoin price slipped over the edge during early Sunday trade. Analysis looks at a few basic chart indications and potential decline targets.
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Time of analysis: 14h00 UTC Bitstamp 4-Hour Candle Chart
From the analysis pages of xbt.social, earlier today:
The 4-hour Bistamp chart shows how the market had sold price straight through $640 support, from where price has been slowly declining toward $600 and 4000 CNY all day.
Although 4hr MACD had signalled this morning’s decline (magenta circle), the stochastics (top panel) are now grouping at their minimum, while RSI has achieved a previous lower low (horizontal blue annotation). The stochastic and RSI indications imply that price may need to correct before decline to $600 can be achieved.
The present decline happens below a bearish 1-day chart (MACD declining below its signal line), as well as a bearish 3-day chart where MACD and the stochastics are both declining. Hence, we may have to wait a week or two for the decline to bottom out and find support.
Based on the 1-day and 3-day bearish charts, the eventual destination of this decline looks to be at least $580, at the previous corrective low. Some analysts are calling for decline to structural support at $450, and this is certainly possible, if $580 fails.Fortunately, we don’t have to guess the bottom. Once we see the 4-hour MACD establish above its zero line and then advance above its signal line – with price above its 200MA, as in the extreme left of the chart – that will be the signal to look for an entry into the next wave of advance. Advance will once again have to grapple with the all-important […]
