BITCOIN PRICE HOLDS THE HIGHS
Bitcoin price pushed to a new high yesterday and has some headroom for an additional advance. The 4-hour chart technical indicators remain bullish but warn of a potential wave top.
Bitcoin Price Analysis
Time of analysis: 15h34 UTC
Huobi 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
The BTC-China chart, and some USD charts have corrected to a support & resistance level and the 4-hour 20MA.
4-hour MACD (at top – diverged) has turned down from its upper Bollinger Band and the stochastics (second from top) are falling away from their maximum.
Ordinarily, these are technical indications of a reversal, but with the persistent bullish energy of this advance, we have to think twice. Price did sell off from the most recent high but not yet with the force that we’d expect to see, coming down from a wave top. Although RSI (third from top) is also diverged to the new price high, it has not yet fallen below the support line (grey) formed during this advance.
While price holds above the 4-hour 20MA and RSI holds above the support line we can assume that advance should continue. The stochastics turning down imply that either 1) a longer correction may be due, or if price pushes strongly to the upside that b) price is approaching a wave top.
An indication that there may be at least one more wave to the upside, is that price had not yet reached the previous high in any of the charts. In fact, the current wave high has not touched any obvious support and resistance line.
There is another Fed rates statement expected on Wednesday 28 October, and the market may continue trading higher in anticipation of a funds rate increase.
Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected. – George Soros
Price is holding above the 4-hour 20-period moving average which is bullish. If the strongest bulls have a strategy then they’re either going to surge price through resistance (and potentially up in a spike) or they may plan to take profit around $300 and 2000 CNY. The 1-day and 4-hour charts suggest the end of the move is near, but even so it does not mean price can’t fling to the upside. Be opportunistic but be cautious.
Bitfinex orderbook depth and Buy/Sell Volume. Note the sell orders at $300: