BITCOIN PRICE ADVANCING NERVOUSLY
Bitcoin price advanced to a new corrective high today before the market nervously started taking profit below $250 (Bitstamp). The chart technicals imply additional highs are in store.
Bitcoin Price Analysis
Time of analysis: 15h53 UTC
Bitstamp 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Price advanced to a new corrective high today and the move caused divergence in the momentum indictors as annotated in magenta.
Typically, bitcoin price will now enter a cycle of compounding divergences – with upside divergence alternating with downside reverse divergence. Currently, price seems to be forming the downside divergence whereby RSI (top) will make a lower low in relation to the previous price swing while price makes a higher low.
The cycle should repeat until downside reverse divergence fails to show in RSI and that will be our signal that the final price high is underway. As long as we see downside reverse divergence following upside regular divergence we can expect additional highs.
For now the upside target remains $254 (Bitstamp) near the 1-day 200MA. Price may overshoot the target as exuberant odd-lotters join the trend near its conclusion. However, we are not trying to squeeze every bit of profit out of the wave, but merely seeking to take profit safely before the majority profit taking slams price from its highs.
Patience is the key to success not speed. – Jesse Livermore
Nervous trade is sometimes just a passing phase before the market gains confidence about direction. In the current chart it may be the case that $250 has become a Big Deal in the minds of traders – the orderbooks certainly show a lot of sell orders around this level. Sometimes the nervousness is a signal of an uncertain corrective advance and imminent reversal. It may just be the case in the current chart.
Bitfinex orderbook depth and Buy/Sell Volume: