BITCOIN PRICE MEANDERING IN CORRECTIVE MODE
Bitcoin price struck a corrective low earlier today and has since reacted to the upside. However, as is usually the case during downward price corrections, there are now plenty of technical barriers to the upside. If price is to advance from the current chart position, it still has a few resistance layers to surmount.
Bitcoin Price Analysis
Time of analysis: 15h10 UTC
BTC-China 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Observations and comments based on the 1-hour BTC-China chart:
Price struck a low earlier today, and the 1-hour indicators formed clear divergence to the new corrective price low. The stochastics (top) indicate their divergence with a blue dot, and RSI (second from top) and MACD (bottom) indicate a higher low. Regular divergence is a critical indicator signal of, at least, short term reversal.
The divergence implied that price would move higher – and it did – until the present reverse divergence seen as green dots in the RSI indicator.
It can be observed that the Bitcoin chart tends to make large advances in an upward-curving shape, whereas corrective advances often have a forward curving shape – as if to highlight the fact that the correction loses momentum with each new high. If readers zoom out a 1-hour chart, they will observe the forward curve of the advance since the mid-September lows. However, this is not a reliable indication of anything at this stage, merely that a resumption of decline could be expected down the line.
Patience is the key to success not speed. – Jesse Livermore
The 1-hour chart does not provide a good oversight of the broader trend. For that, we have to turn to larger timeframe analysis. At the moment, there is no clear signal (at any timeframe) of either reversal or continuation. We give the chart more time to print additional price action before making trading decisions.
Bitfinex orderbook depth and Buy/Sell Volume: