BITCOIN PRICE ALMOST THERE
Bitcoin price has been drawing a horizontal path for the past two days and looks ready to take direction. Whichever way the market chooses in the short-term, today’s analysis considers the bigger picture.
Bitcoin Price Analysis
Time of analysis: 15h22 UTC
BTC-China 1-Day Chart
From the analysis pages of xbt.social, earlier today:
One moving average (200-day) and a line study of the 1-day chart. The BTC-China chart favors this kind of study: it has plenty of chart history back to 2011, it does not feature major spikes and the unleveraged price action is moderate.
Horizontal magenta lines (some of them opaque) show significant tops and their associated indicator readings.
Diagonal lines over price action show the lowering angle of ascent in upward corrections/advances. This can be interpreted as consolidation to the path of the 200MA. At some time there should be either a volatile surge from support (200MA) or a gradual advance showing increasing angles of ascent. The present advance may be this gradual ascent but price must establish above long-term support to confirm its potential to advance.
Blue horizontal lines show the level of major support and resistance dating back to 2013. The red 200-day MA has found a horizontal trajectory within their range. As mentioned above, bitcoin price should establish above the upper resistance level ($260 and 1900 CNY) to convince us that it has completed consolidation and is ready to move on to bigger things.
I’ve found you’ve got to look back at the old things and see them in a new light. – John Coltrane
Bitcoin price spent 2014 in decline and 2015 in consolidation. The sense that a large rally is on the horizon keeps growing. If the present push higher establishes above $260 and 1900 CNY then that will serve as confirmation of an uptrend. Failing to do so may delay the inevitable for a few months more.
Bitfinex orderbook depth and Buy/Sell Volume: