BITCOIN TRADING HIGHER IN A RELENTLESS PUSH
Persistent bitcoin trading pushed price higher for most of today and the evident price pattern – a spike followed by an upward curving arc – has transformed from choppy price waves to longer green candles advance with few retracements. Although the price pattern is characteristic of a price correction, the push higher may not be over.
Bitcoin Price Analysis
Time of analysis: 15h34 UTC
Bitfinex 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
As discussed in yesterday’s analysis, the manifest price pattern is prevalent in the chart – most recently during late August and early September – but the distance being covered by the arc is outsizing many of its predecessors.
If price continues higher, then we face the time-old dilemma: What is its target level? If this is a coordinated move initiated by the largest players, perhaps in anticipation of a likely Fed rates hike this year, then the advance could be relentless.
Instances of vanilla divergence are annotated in the chart. In the two downside instances price makes a new low while the momentum indicators only make a higher low. As expected, price reverses from the indicator divergence. The most recent instance, today, and to the upside, will certainly see a reversal. However, during an impulsive advance or decline, these instances of divergence can compound and not cause price to stop pushing in its desired direction.
The sign of such trend continuation, as thoroughly explained in the xbt.social resource section, is usuallyan instance of regular divergence followed, immediately, by an instance of reverse divergence.
I tend to cut bad trades as soon as possible, forget them, and then move on to new opportunities. – Ed Seykoya
Traders should refrain from going short just yet. Watch if 1-hour RSI and MACD indicate reverse divergence to price on the next downward correction, today or tomorrow. If not, then decline is back in effect – initially to the red 200MA – from where we will assess the technical indications again. If upward continuation is signaled by reverse divergence then traders may want to take a chance on support-and-resistance at $242 or the previous high near $247 (Bitstamp).
Bitfinex orderbook depth and Buy/Sell Volume:
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The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.
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