BITCOIN TRADING STRAINING FOR $300
Bitcoin trading continues buying into the advance that has not seen a new high, in a week, in the leading CNY exchanges. The USD exchanges have pushed to a higher high but have only eeked out a $6 push higher during the past 24 hours. Diverged charts imply a downward correction could set in over the weekend.
Bitcoin Trading and Price Analysis
Time of analysis: 14h59 UTC
BTC-China 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
The potential for a double top had been evident since last weekend’s high failed to sell off below support at midweek. The CNY exchanges are still conforming to the double top pattern while the USD exchanges that have not been leading this advance all along have printed higher highs. Go figure.
The current pattern still resembles a top formation. The upside divergence at all timeframes means it is safer for traders to wait for the price to retrace and then enter, rather than open a position into the presently overbought trend. Consistent with topping behavior, the price should continue printing smaller and smaller waves to the upside and push slightly higher with some effort before a potentially strong reversal.
It is frustrating to sit out a price move but sometimes it presents less risk to one’s account. The push higher is being made with great strain, and there is a sense of “levitation” with no good support for additional strong advance. If it happens, we’ll assess its potential and signalling. A downward correction of this advancing price wave seems overdue and bitcoin’s cryptocurrency companion, the LTCUSD chart, also looks bearish at all timeframes.
The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. – John Templeton
$300 and 1900 CNY seem the obvious upside targets but trading has failed to make steady progress to this psych level. Price may sell-off to previous support near 1700 CNY / $265 or 1600 CNY / $250, unless the bulls can find the energy and buying power to push to target through upside chart divergence.
Bitfinex orderbook depth and Buy/Sell Volume: